UK Self-Storage Operator Lok’nStore Raises £20.5M to Fund Expansion

U.K. self-storage operator Lok’nStore Group PLC raised £20.5 million in equity last week by issuing nearly 2.7 million shares at 765 pence each. The fundraising exceeded the company’s goal of £18 million and will be used to expand its portfolio of freehold and leasehold sites, according to a source.

“This funding will support the growth of the company in the structurally undersupplied U.K. self-storage market,” said Andrew Jacobs, chair, in a released statement. “Our pipeline will, when fully operational, add 37.7% to available space. As those new stores fill up, [they] will generate more cash flow for future growth investment and increased distributions to shareholders.”

The issuance represented about 8.9% of Lok’nStore’s existing, issued-share capital, a source reported.

Founded in 1995, Lok’nStore builds, buys or leases large warehouses or industrial buildings and rents storage units to customers on a weekly basis. It operates 38 self-storage facilities in Southern England.

Sources:
Morningstar, Lok'n Store Raises GBP20.5 Million in New Shares, Exceeding Target
ShareCast, Lok'n Store Raises £20.5M to Support Expansion Plans