Self-storage operator Safestore has signed an agreement to acquire rival Space Maker in a £44m deal.
Safestore will acquire the company and its 12 UK stores and its operating income yield of around 8.7% after purchase costs.
The purchase will be conducted through a “put and call” option and will gain Safestore a portfolio of stores in Bournemouth, Colchester, Redhill, Romford, Chelmsford, Brentford, Exeter, Leeds, Plymouth, Portsmouth and Poole.
The total lettable area is 496,000 sq ft and there is an average remaining lease length of 16.6 years on six leasehold stores.
Space Maker has a turnover of £8.2m and made £3.4m in earnings at the time of the purchase.
Safestore chief executive Frederic Vecchioli said: “We have signed an option agreement to acquire the 12-store Space Maker business, which is expected to be earnings accretive from the completion of the acquisition. We have a strong operational knowledge of Space Maker, having managed the business since 2010 under a management services agreement.”
Safestore will pay a £43m initial consideration plus £1.4m in deferred consideration funded from existing debt facilities.
• To send feedback e-mail mike.cobb@estatesgazette.com or tweet @MikeCobbEG or @estatesgazette
