Self-storage company Lok’nStore has acquired the freehold of its store on Swindon’s Elgin Industrial Estate for £925,000. This will be financed by drawing down on the company’s existing revolving credit facility.
The store has been trading since 2001 in leasehold premises. Lok’nStore chief executive Andrew Jacobs said: “This acquisition is in line with our stated strategy of actively managing our portfolio and taking advantage of opportunities as they arise to acquire the freeholds of our stores.
“Following this acquisition and the opening of three new stores over the coming year, Lok’nStore’s self-storage business will be operating from 13 freehold sites, nine leasehold sites and three managed stores.”
The store had an annual rent of £108,050, meaning there will be a corresponding £108,050 positive impact to the company’s EBITDA (earnings before interest, taxes, depreciation and amortisation) for the coming year. After this transaction 61% of Lok’nStore’s self-storage-space will be freehold and 39% leasehold.
Lok’nStore opened its first self-storage centre in Horsham in 1995 and now operates 22 sites in Southern England. It has a second Swindon store on the town’s Rushy Platt Industrial Estate.
