Stor-Age adds 12 prime purpose-built properties
Stor-Age real estate investment trust, SA’s largest self-storage group, says it will use existing debt facilities to finance the R58m acquisition of 12 purpose-built self-storage properties, with effect from October 1.
The acquisitions look set to provide a further boost to the company, which has consistently increased revenue and earnings since it listed in November 2015.
As at March, Stor-Age’s total gross leasable area had increased by 77% to more than 321,000m², while the value of properties increased threefold to R3.9bn since the listing.
Stor-Age, which operates self-storage facilities in SA and the UK, earlier this week announced the acquisition of the properties in Cape Town, Johannesburg, Durban, Port Elizabeth and Pretoria.
The latest deal adds R1.1bn worth of investment-grade self-storage properties in prime locations, increasing the value of the company’s properties in SA by 29%, from R3.9bn to R5bn. The deal will also increase the company’s total gross leasable area by 25% to 410 000m².
Stor-Age has loan facilities of R995m available, with maturities ranging from December 2019 to November 2022. The company has undrawn facilities of R642.4m.
As at March 31, the company had net debt of R619.7m, with a gearing ratio of 16.1%.