Sovran Self Storage, operator of Uncle Bobs Self Storage, is remaining cautious about acquisitions and new developmentfor now.
After two years of simply surviving the recession, several big businesses are now looking for good acquisition deals. One reason for the wait is to ensure the burgeoning economic recovery sticks.
Acquisitions helped Sovran become the fourth largest U.S. self-storage operator, but the company scaled back on buying self-storage properties during the recession and even sold some properties.
Now, the company is ready to start buying again, according to David Rogers, chief financial officer. However, Rogers said the company will be choosey about future purchases, stay away from distressed properties and look for new markets. Sovran generates about $17 million a year in cash and has access to $175 million in borrowing.
Sources:
- Buffalo News: Companies Go Slow on Acquisitions
