Lok’nStore has announced the sale of its shed in Kingston, Surrey, to an unnamed residential developer, believed to be Crest Nicholson, for £10m.
The AIM listed self-storage company gained planning permission for a 120-home development on the site, bought for £976,000 in 1996, in December 2004.
The site was valued in July 2005 by Cushman Wakefield Healey and Baker as a self storage site at £2.75m and as a residential development site at £9.15m in July 2006.
Lok’nStore chief executive Andrew Jacobs said: “We are delighted to have achieved such a good price for our Kingston property, which is at the upper end of our expectations.
“The sale of Kingston is in line with our core strategy of continually reviewing and actively managing our operating portfolio to ensure we are maximising its value.
“This includes strengthening our distinctive brand, increasing the size of our stores, buying in our freeholds and moving or selling stores when it increases shareholder value.”
Crest Nicholson will pay £6m on completion in June and the remaining £4m plus accrued interest in December.
The company said existing self-storage customers will be transferred to Lok’nStore’s other locations.
The company will announce interim results for the half year to 31 January 2007 on 23 April 2007.
