Update 12/14/16 – Stor-Age has completed its acquisition of Storage RSA share capital through its subsidiary Roeland Street Investments and made “significant progress” toward a proposed purchase of another Cape Town facility in Somerset West Business Park that operates under the Storage RSA brand, according to the source.
The completed acquisition includes five storage facilities comprising 39,869 square meters and a development opportunity in Johannesburg. The pending property comprises 5,500 square meters, the source reported. Together the assets will add more than 45,000 square meters to the Stor-Age portfolio.
9/23/16 – Stor-Age Property REIT Ltd., which operates 37 self-storage facilities in South Africa, has agreed to acquire local competitor Storage RSA. With seven locations in Cape Town and the Gauteng province, Storage RSA is the third largest self-storage operator in the country, according to the source. The memorandum of understanding is for 100 percent of its shares.
The deal is in line with the Stor-Age pursuit of value-added acquisitions, according to company officials. “From a sector perspective, concluding the deal would solidify and significantly contribute to Stor-Age’s position as a significant self-storage operator and property fund in the South African market,” officials told the source. “While there is some room for immediate value enhancement of the portfolio through Stor-Age’s sophisticated operations platform, the majority of this value enhancement will occur over time through key initiatives, such as digital marketing, revenue management and scale in key markets.”
It has not yet been announced when the deal is expected to close.
The move further solidifies Stor-Age as the dominant self-storage operator in South Africa. Last November, it became South Africa’s first self-storage real estate investment trust listed on the Johannesburg Stock Exchange. Headquartered in Cape Town, it operates self-storage facilities in six South African cities. Established in 2006 by the Lucas family, it’s the operator appointed by Stor-Age Property Fund Managers Pty. Ltd. to manage and market the property portfolio owned by Stor-Age Property Holdings Pty. Ltd.