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Big Yellow Share Placement Raises £100M for Self-Storage Acquisitions

U.K. self-storage operator Big Yellow Group PLC has raised £100 million through a placement of 7.8 million shares to existing shareholders and new investors. The company intends to direct the proceeds toward £145 million in acquisitions, including the remaining 80% stake in the Armadillo Self Storage brand and a property at 66 Hammersmith Road in the West Kensington area of London, according to the source.

The company is expected to pay £119 million, including debt, to joint-venture partners for the remaining stake in the Armadillo brand of 25 regional sites. The Hammersmith purchase is £26 million. Company officials described the property as “the most strategic site in the group’s history,” the source reported.

“The placing has been successfully completed, and we are very grateful to our shareholders for their support,” said Nicholas Vetch, executive chair. “This equity raise allows us to fund two important strategic acquisitions, which along with our existing development pipeline, have the potential to generate in excess of £40 million of net operating income over the short to medium term, and in so doing create significant value for our shareholders.”

The equity shares sold for £12.90 each, representing a .9% discount to the closing price on June 23. The shares represented 4.4% of Big Yellow’s ordinary share capital before the placing, according to the source.

Big Yellow Group operates 103 self-storage locations in the United Kingdom under the Big Yellow Self Storage and Armadillo brand names, with most concentrated in Greater London and Southeast England. Its total portfolio comprises more than 6 million square feet.

Source:
ShareCast, Big Yellow Raises £100M for Acquisitions

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