U.K. self-storage company Lok'nStore Group PLC has sold a facility in Reading, England, in principle for £2.9 million. The purchase price is 7.4 percent above a July 31 property valuation of £2.7 million, and will be paid in cash when the location is vacated in 2014, according to the source.
In addition to the sale price, Lok’nStore will receive overage “dependent on the value of sales achieved on the development of residential properties,” the source reported. The self-storage company owns an adjacent site in Reading on which it is building a new facility to replace the current location.
The new facility is expected to have 48,000 square feet of self-storage space, 20 percent more than the current property. The site is directly accessible from a busy main road which connects the town center with the M4 highway.
The company is also developing new U.K. facilities in Crawley, Maidenhead and Aldershot. Lok’nStore builds, buys or leases large warehouses or industrial buildings and rents storage units to customers on a weekly basis. Around 60 percent of the company's 7,000 customers are residential and 40 percent commercial. Lok’nStore has more than 920,000 square feet of net rentable space, which is evenly split between freehold and leasehold.