Stor-Age Property REIT, which operates self-storage facilities in South Africa and the United Kingdom, has agreed to acquire 12 properties that are currently part of its management portfolio. The company will purchase Roeland Street Investments 2 (RSI2) and Roeland Street Investments 3 (RSI3) for a combined R58 million. The sites comprise about 88,000 square meters of gross leasable space in Cape Town, Durban, Johannesburg, Port Elizabeth and Pretoria, South Africa. The deal is expected to close around Oct. 1, according to the source.
Stor-Age had pre-emptive right to purchase the facilities. The 11 RSI2 properties are being acquired from Acucap Investments, a subsidiary of Growthpoint Properties, Stor-Age Property Holdings and The Fairstore Trust, for R43.5 million.
The combined portfolio had 73 percent occupancy at the time of the sale agreement. Eight RSI2 properties were still in lease-up, with an average occupancy of about 40 percent. Three other RSI2 properties were built in 2016. The lone RSI3 facility was developed last year. All the assets already are branded as Stor-Age, the source reported.
Once the deal closes, the Stor-Age portfolio will be worth about R5 billion, with 70 percent of its facilities in South Africa and 30 percent in the U.K., according to the source. Its South Africa portfolio will increase to 353,000 square meters.
Headquartered in Cape Town, Stor-Age was established in 2005 by Stor-Age Property Holdings Pty. Ltd. to acquire, develop and manage self-storage assets. Today, Stor-Age operates a 63-property portfolio, primarily in four South African metropolitan areas, that comprises approximately 407,000 square meters. It acquired U.K. operator Storage King in 2017. The company was listed on the Johannesburg Stock Exchange in November 2015.
Engineering News, Stor-Age to Acquire Self-Storage Properties in Major Cities for R58M