Lok'nStore Group PLC, which operates 26 self-storage and two records-storage facilities in the United Kingdom, has acquired land in Leicester, England, for £8.5M on which it plans to build a new facility. If approved by the city’s planning department, the site will contain 60,000 square feet of storage space, according to the source.
Lok'nStore has six other locations under development in England. Its new site in Wellingborough will open next month, while locations in Dover and Exeter are in the early building stages. The company also has properties in the design and planning stage in Bedford, Bournemouth and Ipswich. All are excepted to open by the end of 2019, the source reported.
“All are in prominent locations with large catchment areas and little established competition, and demonstrate the company's ability to source high-quality sites, adding to future sales and earnings growth,” said CEO Andrew Jacobs.
Lok'nStore also announced an increase in its banking facility to £50M, following the execution of a £10M accordion. The capital will provide funding for site acquisitions and support company growth.
“The £10M increase in our existing banking facility, with its extremely competitive terms and flexible structure, enables Lok'nStore to continue with its ambitious plans for growth funded from operating cash flow, existing cash and bank lending, whilst the balance sheet remains conservatively geared,” Jacobs said. “Trading at our new stores has been excellent. These eye-catching buildings, with their distinctive orange Lok'nStore-branded livery and prominent signage create highly visible landmarks, which continues to be a big contributor of new customers.”
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 26 self-storage facilities and two record-storage properties in South England.
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