Shurgard Self-Storage Completes Acquisition of Lok'nStore Group

Update 8/5/22 – Shurgard’s acquisition of Lok'nStore is now official, having gone into effect on Aug. 1. The European self-storage operator plans to consolidate the newly purchased group into its financial statements moving forward, according to a press release.

As part of the acquisition, it is expected that key Lok'nStore executives will step down from their positions. This includes the chair, finance director, non-executive directors and group managing director.

“We are very proud to integrate this high-quality business and team into Shurgard. The acquisition of Lok’nStore is doubling our presence in the U.K., a key target market, and is accelerating our growth strategy. It has a highly attractive, recently repositioned, modern, purpose-built portfolio, on top of which it brings a strong pipeline,” Oursin said. “Furthermore, its strong development team will accelerate new opportunities in London, the South-East and Manchester. We are excited about our ability to acquire, develop and expand in the U.K. alongside our other European markets.”

Through this transaction, Shurgard has doubled its footprint from 47 to 99 self-storage facilities in key U.K. locations, according to a press release. Nearly 90% of the acquired properties are in London, Greater Manchester and South-East England. Many of the Lok’nStore facilities are modernized, with 43% built since 2022.

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6/10/24 – Lok'nStore shareholders have approved the cash offer by Shurgard Self Storage to purchase the 43 Lok'nStore facilities. The deal is expected to close on Aug. 1. The acquisition will add 1.8 million square feet to Shurgard’s portfolio, according to a press release.

“Following the successful shareholder vote, I am looking forward to bringing this high-quality business and team into Shurgard. The acquisition of Lok’nStore will double our presence in the U.K., a key target market, and will accelerate our growth strategy. It has a highly attractive, recently repositioned, modern, purpose-built portfolio, on top of which it brings a strong pipeline,” said Shurgard CEO Marc Oursin. “Furthermore, its strong development team will accelerate new opportunities in London, the South-East and Manchester. We are excited about our ability to acquire, develop and expand in the U.K. alongside our other European markets.”

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6/10/24 – Shurgard Self Storage Ltd., the European affiliate of U.S.-based real estate investment trust (REIT) Public Storage Inc., has acquired Lok'nStore Group in an all-cash deal for £378 million. Expected to be complete in July, the transaction includes 43 facilities in Manchester and Southeast England, according to sources.

“The acquisition will allow Shurgard to increase its footprint in the two most attractive target markets outside of London,” Shurgard said in a statement.

Shurgard hosted a conference call earlier this week to discuss the purchase, which includes five development projects. Lok'nStore shares will be delisted once the deal closes.

Duplicative job roles could be eliminated due to the merger. “It will likely result in the loss of the majority of roles across Lok’nStore’s administrative and head-office functions,” Shurgard officials said.

Founded in 1995 by CEO Andrew Jacobs, Lok'nStore has a portfolio comprising 1.8 million square feet and another 538,195 square feet under development. About 40% has been constructed since 2022, according to a source.

Shurgard operates 276 self-storage properties comprising 1.4 million net rentable square meters in Belgium, Denmark, France, Germany, The Netherlands, Sweden and the United Kingdom.

Sources:
Shurgard, Shurgard Announces Cash Acquisition of Lok’n Store Group plc
Mirror, Self-Storage Giant Shurgard in £378 Million Takeover of UK's Lok'nStore
Yahoo, Shurgard Agrees to Buy Self-Storage Rival Lok'nStore in $474 Million Deal
Shurgard Self Storage Ltd., Lok’nStore Acquisition Scheme Becomes Effective
Shurgard, Lok’nStore Shareholders Vote in Favor of Acquisition