Self-storage group Lok’nStore hopes to step up its development of sites from one or two pa to six. The group trades from 21 sites.
Chief executive Andrew Jacobs said that “a reasonable supply of good sites”, and the success in the past four months of two new stores, means “there is opportunity to increase the business’s value by accelerating the development of new stores. We’re perfectly capable of finding and openinghalf a dozen stores in a year.”
He added that the company’s new store in Farnborough was its first new-build site. Considering more of these would “significantly increase our opportunities”.
Last week, the company announced it had doubled interim pretax profits for the period to 31 January 2006 to £153,524 on a 10.2% increase in revenues to £4.28m.
Jacobs said Lok’nStore hopes to supplement borrowings for its expansion with cash from development at some of its sites. It intends to sell Skerne Road in Kingston, where it has planning consent for 124 homes, to a housebuilder for up to £12m.
IUS hedge fund manager Mercury Real Estate Partners now owns 16%.
