Lok/nStore announces two new 'landmark' stores

The AIM-traded firm said the Bedford store would be owned by Lok'nStore, while the Dover store would be developed and operated on a management contract.

Lok'nStore said it will develop the two new sites as purpose-built landmark stores, explaining that the eye-catching buildings with ‘distinctive orange’ Lok'nStore branded livery and prominent signage would create “highly visible landmarks” which the board claimed continued to be a big contributor of new business.

Building work would follow completion of all relevant planning matters, with store openings scheduled for 2018.

“These excellent new locations add to the stores announced last week and our recent rapid growth in our pipeline of stores,” said CEO Andrew Jacobs.

“Our pipeline will now add 26.1% to our existing trading space.”

When developed, Lok’nStore said the two stores would add around 84,800 square feet of trading space.

That would take the current pipeline to seven stores with 338,300 square feet of new capacity, adding 26.1% to the existing trading space of 1.29 million square feet after the opening of the Broadstairs store in May 2017.

The Dover store would increase the managed store portfolio by 8.6% and bring the total number of managed stores to 11 out of a total of 33 stores.

Lok'nStore said it would generate a return on the Dover store by charging management fees for the acquisition, branding and operation of the stores based on revenue and profits.

The projects reportedly continued to fulfil Lok'nStore's strategy of expanding the operating footprint of the business by developing both managed stores and owned stores while maintaining its strong balance sheet.

Lok’nStore’s board said the stored added to its pipeline of four new ‘landmark’ stores announced last year, of which Broadstairs opened in May and two additional sites were announced in July at Exeter and Ipswich.

Hemel Hempstead and Wellingborough were on target to open in late 2017 and Gillingham in Spring 2018, the board confirmed.

Exeter and Ipswich would open towards the end of 2018, with all of those stores being in ‘prominent retail locations’ with little established competition.

“Our objective remains to grow by both acquiring more sites to build new landmark stores for Lok'nStore's own balance sheet and to increase the number of stores we manage under the Lok'nStore brand for third parties,” Andrew Jacobs added.

“In continuing to execute our strategy we will deliver a predictable growth in dividends for investors from an increasing number of stores underpinned by a strong asset base and conservatively geared balance sheet.”