One of the major self-store operators in South Africa, Stor-Age is finalising a deal to take over a major slice of UK operator Storage King. The deal worth around a staggering £53m (through a mix of equity and debt) will result in Stor-Age taking around 97% of the share capital of Storage King who primarily operate thirteen self-store facilities in the south and south east of the UK. Another twelve branches are operated under licence to Storage King so the whole portfolio of properties for Stor-Age will be twenty five.
Stor-Age CEO, Gavin Lucas said ‘Self storage is a growth sector globally, not only in emerging markets but also in the first world. The UK self storage market is a significant growth opportunity – it offers a more robust macro environment but with a relative under supply of self storage compared to the US and Australia, and a language, culture and regulatory system familiar to us in South Africa. Even approaching Brexit, self storage remains an attractive investment in the UK due to the proven resilience of the sector.’