TIDMSAFE
RNS Number : 3538I
Safestore Holdings plc
02 December 2022
02 December 2022
Safestore Holdings plc
("Safestore" or the "Group")
Safestore and Carlyle form joint venture to enter German
market
Rotterdam development property added to Safestore's pipeline
Notice of results
Highlights
-- Entry into German market via a new joint venture ("JV") with
Carlyle which has acquired the seven-store myStorage business with
326,000 sq ft of MLA (1)
-- New development site secured by the Group in Rotterdam in the Netherlands
Frederic Vecchioli, Chief Executive Officer, commented:
"Following our previous successful JV with Carlyle in the
Benelux region, we have established a new German JV which has
acquired the seven-store myStorage business. Germany is one of
Europe's most under-penetrated self-storage markets and I look
forward to growing our presence there."
"In addition, we have added a new development site in Rotterdam
which supports our continued strategy of expanding our footprint in
the Benelux market and extends the Group's development pipeline to
1.5m sq ft."
Joint venture with Carlyle and Investment in myStorage in
Germany
Safestore has entered the German Self Storage market via a new
joint venture with global investment firm Carlyle (NASDAQ: CG),
which has acquired the myStorage business.
Safestore has developed a multi-country highly scalable platform
with leading marketing and operational expertise in self-storage,
with a proven track record for developing its platform in new
markets.
The acquisition of myStorage represents an excellent opportunity
to develop our platform into the attractive German self-storage
market. The JV builds upon our previous successful relationship
with Carlyle having entered the Benelux market in 2019. Our common
intention is to target development and acquisition opportunities
through the JV, providing the opportunity to achieve operational
scale and to develop local market knowledge, whilst also retaining
the option for Safestore to develop its own wholly owned
self-storage sites in Germany. We look forward to continuing our
working relationship with Carlyle, and to developing a long and
mutually beneficial relationship.
The German market is one of Europe's more under-penetrated
markets with just 0.09 sq ft of storage space per capita which
compares to 0.76 sq ft in the UK, 0.24 sq ft in France, 0.24 sq ft
in Spain, 0.60 sq ft in the Netherlands and 0.20 sq ft in Belgium.
According to the 2022 FEDESSA report, there are just 320 facilities
in Germany and 7.6m sq ft of lettable space.
myStorage has seven medium to long term leasehold stores and
326,000 sq ft of MLA(1) in Berlin, Heidelburg, Mannheim, Fürth,
Nuremburg, Neu-Ulm and Reutlingen.
The occupancy of the portfolio is 67% with two of the stores
having opened in 2021.
Safestore's initial investment in the joint venture is a c.
EUR2.2m equity investment for a 10% share of the JV. Safestore will
also earn a fee for providing management services to the JV. The
Group expects to earn an initial return on investment of c.15% for
the first full year before transaction related costs reflecting its
share of expected joint venture profits and fees for management
services.
Rotterdam development
Safestore has secured a freehold site in Rotterdam for
construction of a 71,000 sq ft MLA(1) store subject to
planning.
Rotterdam is one of the major cities in the Netherlands with a
population of 588,000 and forms part of the larger Randstad area.
The new site forms part of a larger re-development.
With the addition of this site, the total group property
pipeline is now at 1.5m sq ft and represents c. 19% of our existing
portfolio. Outstanding capital expenditure on the pipeline is
GBP148m.
Notice of results
Safestore will announce its results for the year ended 31
October 2022 on Tuesday, 17 January 2023.
Ends
1 - MLA is Maximum Lettable Area.
Enquiries
Safestore Holdings PLC
Frederic Vecchioli, Chief via Instinctif Partners
Executive Officer
Andy Jones, Chief Financial
Officer
www.safestore.com
Instinctif Partners
07917 178920 / 07739
Guy Scarborough/ Bryn Woodward 342009
Notes to Editors
-- Safestore is the UK's largest self-storage group with 179
stores on 31 October 2022, comprising 130 wholly owned stores in
the UK (including 72 in London and the South East with the
remainder in key metropolitan areas such as Manchester, Birmingham,
Glasgow, Edinburgh, Liverpool, Sheffield, Leeds, Newcastle, and
Bristol), 29 wholly owned stores in the Paris region, 5 stores in
Spain, 9 stores in the Netherlands and 6 stores in Belgium.
-- Safestore operates more self-storage sites inside the M25 and
in central Paris than any competitor providing more proximity to
customers in the wealthiest and more densely populated UK and
French markets.
-- Safestore was founded in the UK in 1998. It acquired the
French business "Une Pièce en Plus" ("UPP") in 2004 which was
founded in 1998 by the current Safestore Group CEO Frederic
Vecchioli.
-- Safestore has been listed on the London Stock Exchange since
2007. It entered the FTSE 250 index in October 2015.
-- The Group provides storage to around 90,000 personal and business customers.
-- As of 31 October 2022, Safestore had a maximum lettable area
("MLA") of 7.698 million sq ft (excluding the expansion pipeline
stores) of which 6.317 million sq ft was occupied.
-- Safestore employs around 750 people in the UK, Paris, Spain, the Netherlands and Belgium.
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