Lok’nStore has formed a joint venture to develop a store in Aldershot, its first to be managed on behalf of third-party investors.
Lok’nStore will contribute around £2.5m of the estimated £4.5m total cost of development, and will manage the building and the operation of the store.
The other investors, including the original landowner Mark Shaw, chairman of investment fund management house Tritax Group, will invest the remaining £2m.
The long lease for the property will be held by the joint venture company and the property already has planning permission for a self-storage facility.
Lok’nStore will generate a return by charging the joint venture company a management fee for the construction, operation and branding of the store.
Chief executive Andrew Jacobs said: “The pioneering approach to funding the development further demonstrates our commitment to developing new stores while minimising capital outlay.”
Shaw added: “This joint venture with Lok’nStore has unlocked this attractive site for self-storage and the innovative financial structure has enabled us to optimise the tax benefits.”
nick.whitten@estatesgazette.com
