Your personal reputation is something you should care about a great deal. Everyone wants to be seen in a good light, with pleasant thoughts and feelings associated with their name. Business reputations are similar. A positive public standing for your self-storage operation can be critical to whether it succeeds or fails. But with today’s evolving consumer habits, it can be challenging to manage and cultivate a healthy brand image.

Online reviews are central to public perception and reputation management. They’re a hot-button topic in the self-storage industry, so let’s examine how to build an effective reputation online and how reviews can impact it.

Controlling the Narrative

There are three primary areas self-storage operators can leverage to directly impact their company’s reputation: customer service, user experience, and marketing and advertising. Here’s why each is important.

Customer service is right at the core of your business. You should always strive to create enjoyable experiences for your tenants and prospects. Having a company philosophy that focuses on going the extra mile really makes an impression on tenants, which improves your company reputation and increases the likelihood of referrals, repeat business and positive reviews.

User experience encompasses a lot of business aspects, ranging from the online rental process to gate access and even pricing. The point is to create a user-friendly experience at as many touchpoints as possible. Focus on delivering an easy, hassle-free interaction. Every part of your business should have a core focus on making the rental and storing as simple as possible.

A Harvard Business School study found that the No. 1 factor in delivering a great customer experience isn’t delighting customers with an over-the-top presentation but “reducing their effort and establishing trust.” This leads to more pleasant experiences with your tenants.

How you market and advertise your business is one of the most critical strategies to help control company reputation. The Internet has become the go-to for most consumers when they need a product or service. In fact, a recent Forbes study indicated 97 percent of consumers searched online for local businesses in 2017. Because of this, there’s a huge need to market effectively online. Focus on having a well-designed and easy-to-use website; invest in search engine optimization (SEO) services; and enable online reviews on your Google My Business (GMB), Facebook and Yelp pages, among others.

Successfully applying these principles will improve how customers view your operation and create a more effective business reputation. While not all efforts should be focused on getting online reviews, everything you do for customers impacts the likelihood of them leaving a good review or referring someone to your facility.

How Reviews Shape Your Reputation

Now, let’s discuss why you should take online reviews seriously and the impact they can have on your business. The notion of online customer reviews draws a lot of attention. Some owners believe they mean everything and you should focus all your marketing attention on them. On the other hand, there’s a school of thought that reviews don’t matter much because many can be faked, and people don’t really rely on them. Well, they’re both wrong!

Online reviews should be a big focal point of your marketing strategy, but not at the expense of other important factors like SEO, pay-per-click ads, traditional marketing, etc. Despite arguments that suggest reviews aren’t important or are easily falsified, you should know the majority are real and very helpful. They’re also likely to gain in importance.

To get a firm understanding of just how important online reviews have become to businesses, consider these stats compiled from reputation-management firm Status Labs and the “Reach Local” blog:

• 91 percent of North American consumers read online reviews to learn about a business.
• 85 percent of consumers trust online reviews more than personal recommendations from family/friends.
• 87 percent of consumers won’t consider a local business with low ratings.
• 49 percent of consumers need at least a four-star rating before they choose to use a business.
• Responding to reviews is important, with 30 percent of consumers indicating this is key when judging local businesses.
• 30 percent of consumers say they positively judge businesses that publicly respond to online reviews.
• 68 percent of consumers have left a review of a local business when asked, with 74 percent indicating they’ve been asked for their feedback.
• Consumers read an average of seven reviews before trusting a business, up from six the previous year.
• 62 percent of consumers won’t use a business with less than a three-star rating.
• Going from a three- to a five-star rating delivers businesses greater than 25 percent more clicks from Google.
• 86 percent of people would pay more for services from companies with higher ratings and reviews.

Why Consumers Love Reviews

Today’s consumers are more educated than ever. They usually know what they want and research several options before deciding. Online reviews are one of the most important factors because customers want to know how others feel about a business or product. Most have a natural fear of being taken advantage of or having buyer’s remorse; to counter that feeling, they investigate over and over again, even for the most basic items. They rely on reviews because:

• They can get instant assurance and trust.
• They can identify potential problems people have had.
• They can get a sense of the company’s customer service.
• They can get an overall snapshot of a company’s reputation.

While customers will take time to research before deciding, they still want things done quickly. A self-storage prospect will perform a Google search and wind up with a list of local facilities. He’s then likely to check their reviews and quickly determine a group of contenders, getting a feel for who has the best customer experience. He’ll then pursue his top option by renting online or calling by phone. This is now common behavior. Facility operators should take it seriously and see how they stack up online.

Why Businesses Love Reviews

Self-storage owners who use an effective online strategy love reviews for many of the same reasons as consumers. They help service providers quickly build trust with customers, and the platform can provide prospects with great feedback on the business. Reviews also:

• Improve the likelihood of clicks and traffic to your website
• Improve your local SEO
• Provide social proof that your business is legitimate

Businesses that prioritize online marketing via SEO know how helpful online reviews can be on search engines, especially Google. Having positive reviews on your GMB page increases your local SEO. It can also improve your search ranking and help you be found by prospects much more easily. Reviews can even increase your click-through rate, the percentage of people clicking on your listing and going to your website.

GMB pages with positive feedback and a high quantity of reviews perform much better than those who don’t. Consumers tend to click on those listings much more frequently.

Creating a Review Strategy

Once you’re ready to leverage online reviews to help build brand reputation, you’ll find there can be some challenges. Here are six steps in creating a consistent, effective review strategy.

1. Identify the best sites on which to get reviews. Before you start collecting reviews, give some thought to which websites and platforms will work best for you. Google is the most effective search engine and review platform to pursue. It carries the majority of search engine traffic, and the posts are prominently shown when people search for storage-related phrases such as “self storage my town.”

However, just because Google is the most important doesn’t mean you should disregard others. Also get reviews on Bing, Yelp, Facebook, etc. A quick note: Though Facebook reviews can be a valuable part of social media strategy, they have less impact in self-storage. It’s still a good idea to use them, but they won’t make or break you like Google can.

2. Understand the policies for each site. Understanding the rules for Google, Yelp, Facebook and other review sites is very important. You don’t want to violate policies and risk getting your listing removed or penalized. Study each site’s review guidelines and stay aware of them as you move forward.

3. Create a simple online process. This is a critical step that can make or break your strategy. Make it easy for people to leave reviews quickly. They may want to give you good reviews but won’t be inclined to do so if it takes too long. Cultivate a one- to three-step process. Usually this involves a link that takes the user to the exact location, so all he has to do is select the star rating, write his opinion and push submit.

To encourage participation, you may want to include the link in e-mailed or texted invoices or payment receipts. When tenants have a good experience, they can simply click the link.

4. Create printed handouts. These can be very helpful for some customers and can also act as reminders for those who may forget to leave a review in the moment. They should be simple and not too large, maybe a postcard or half a sheet of letter-size paper. Give it to tenants when they visit your office or interact with you.

5. Respond to reviews. Answering posts, especially negative ones, helps people see the full story and builds trust. Customers who leave bad reviews often do so for ridiculous reasons, such as being reminded to pay their overdue bill. They get upset with you and go online to lash out at your business. Though you didn’t do anything wrong, take the high road and respond professionally. Address the situation and offer help or solutions.

Remember, 30 percent of consumers say they judge businesses positively that publicly respond to their online reviews. This can have a big impact on whether a prospect rents from you.

6. Be consistent. I can’t stress this enough. Once you have a plan in place and train staff to execute it, keep the strategy going and you’ll continually add reviews. Google in particular will take notice.

Remember, too, that 77 percent of consumers think reviews older than three months are no longer relevant. Adding just one to three new reviews per month will put you in a very good place with your online reputation. It’s also the best way to counter negative reviews. You’re essentially drowning them out with a consistent influx of positive feedback.

Find Your Balance

You want to create a balanced marketing strategy, with even just a portion dedicated to online reviews. No matter how small the effort may seem, it can make a significant difference to your reputation. Reviews are here to stay and will grow in importance.

Create an effective strategy that’s efficient for you and your customers. If you’re consistent and diligent with your efforts, positive results will come.

Ken Turley is CEO and co-owner of RIZE Marketing Agency, which helps self-storage companies and other businesses increase online visibility and meet their marketing goals. Ken has years of experience in SEO and all things online marketing, and is a frequent speaker at many self storage trade shows. RIZE Marketing has helped several hundred storage facilities across the US and Canada take their facility's online presence to new heights. For more information visit www.selfstoragemarketing.net.

My father was a wise Southern gentleman from Poteau, Okla. His intuition and experience gave him great insight into peoples’ behavior and character. Even after quick encounters with the young men I dated in my teen years, his observations were astonishing.

He would say things in his sweet drawl such as, “That young man is real handsome, but my guess is he won’t amount to a hill of beans.” When another honked his horn in front of my house, my father said, “Well, I declare, that boy is too big for his britches. You go tell him to hold his horses. If he intends on taking out my daughter, who’s as pretty as a peach, I reckon he’ll want to come in and meet me like a gentleman.”

Looking back, I realize my father was vetting my boyfriends, and his belief that peoples’ actions speak volumes has made a profound impact on my 34-year career in self-storage, during which I’ve hired, trained, supervised and terminated hundreds of employees. For many years, I relied on my intuition when hiring. (I guess the apple doesn’t fall far from the tree.) My Southern roots have given me many tools to sort the wheat from the chaff.

Even so, times are a-changin’. Employers can’t afford to choose employees haphazardly. Hiring should be done deliberately to see if there’s going to be a good match. All your interactions with a candidate should be part of your decision-making process, of course; but you’ll need to rely on more than that.

Not everyone is cut out for a job in self-storage. A manager needs a variety of skills and personality traits. It can be difficult to find great people to wear the many hats necessary for facility management, but as an owner, hiring is one of the most important decisions you’ll make. The following will help you develop a process that relies a bit on intuition but focuses on researching each candidate.

Conduct Background Checks

Unlike in the past, most people these days aren’t looking for a job that could last for 30 years, and it’s no surprise that candidates aren’t always honest. That’s why it’s imperative to research a person before you bring him aboard.

Background checks are no longer just a requirement for high-security jobs. Before hiring someone to manage your self-storage business, conduct a thorough investigation into his past. Too many applicants make false claims on their job applications and résumés or attempt to cover up criminal activity.

It’s estimated that 40 percent of background checks turn up at least one serious discrepancy. In addition, workplace violence accounts for 18 percent of all violent crimes. A Matter of Fact, a provider of employment background checks, revealed that “serious flags” are discovered in:

• 39 percent of all background checks
• 10 percent of county criminal record checks
• 10 percent of education verifications
• 23 percent of employment verifications
• 44 percent of driving records

When most people think of a background check, they think of a simple criminal history, however, it’s much more detailed. A standard check should include:

• Past-employment verification
• Criminal and civil background checks
• Credit checks
• Drug screening
• Education verification
• Reference checks

One of the best ways to ensure an applicant is being honest is to check his list of last-known addresses. In one case, an applicant of mine failed to disclose a previous employer. With a quick Google search of his address, I discovered he’d been employed at another storage property but left it off the résumé. When I called the facility owner, he told me this person had stolen money from the business. Furthermore, when the applicant moved out of the manager’s residence, he took all the appliances! I most certainly didn’t hire that candidate.

Background checks can also reveal infractions that might impact an individual's ability to perform the job. In addition to criminal history, some will highlight driving records, credit histories or other information. While numerous license suspensions or a bad credit history may not hold any bearing on an applicant's abilities, for positions that involve money-handling, this information is absolutely relevant.

Applicants should be made aware that the final candidate will be required to undergo a variety of tests. These might include the above background checks, a drug test and even a job-aptitude query.

Check References

Many job applicants put on a performance during the interview, trying to behave in a way they think the owner/supervisor wants to see and hear. Some are dishonest on their applications or résumés, making up work histories, embellishing job responsibilities or titles, or changing employment dates. I’ve even had people I’ve fired list me as reference! The reason they can be so bold is because the likelihood of an employer checking their references is very low.

Your background checks should include calls to former employers to ensure the information on the résumé and application is accurate. If it isn’t, you know you have a dishonest candidate on your hands. And if there's something no employer wants, it's a worker he can’t trust.

Follow the Law

Although a thorough review of an applicant’s criminal and employment history is necessary, those in charge of hiring at your company must follow employment laws and take care to avoid discriminatory practices. The Equal Employment Opportunity Commission states employees have a right to:

• Fair treatment with no discrimination based on their race, color, religion, sex (including pregnancy, sexual orientation or gender identity), national origin, disability, age or genetics (including family medical history)
• Equal pay for equal work
• Reasonable accommodations for a medical condition or religious beliefs, if required by law
• Confidentiality of any medical or genetic information they share with their employer
• The ability to report discrimination, participate in a discrimination investigation or lawsuit, or oppose discrimination without retaliation from the employer

Other federal, state or local laws may also apply to your business. Government websites will have additional information and guidelines.

Stick to Your Process

Once you’ve made a hiring mistake, it’s difficult to fix without collateral damage. Studies have shown that poor hiring can lower employee morale and cause a decrease in staff performance. Other damaging consequences include lost customers and higher training and turnover costs. The average cost of a bad hire is two and a half times the employee’s salary. In self-storage, it can be three times.

Set up a hiring process that includes candidate research and stick with it. Apply it consistently to every candidate. Finally, don’t believe your skills of observation are better than facts. Your observations are important, but information from a background check will provide an important glimpse into a person’s life and character.

Carol Mixon-Krendl is the owner of SkilCheck Services Inc., which provides self-storage auditing, mystery shopping, development and operation consultation, and sales training. She’s managed more than 26 storage locations in the West and is a frequent speaker at industry tradeshows. She’s also written more than 100 articles for various publications, and has served on state and national self-storage association boards. For more information, call 800.374.7545; e-mail [email protected]; visit www.skilcheck.com.

“Good” tenants are every operator’s dream. Not only do they pay their bill on time and never kick up a fuss, they’re friendly and can even be counted on to provide useful feedback on your property. Some will stop by for a chat whenever they’re on site, while others have even been known to bring the occasional gift.

In a recent thread on Self-Storage Talk, the industry’s largest online community, members share heartwarming stories about these amazing customers. Which of your tenant interactions from the past year stick out? Add your story to this cheerful thread.

With only about 50 facilities countrywide, the Italian self-storage industry is young compared to other European markets that boast hundreds of sites. Still, the service has been embraced by the country’s consumers, and a handful of operators are enjoying great success.

One reason is the guidance of the local self-storage association, Associazione Imprese Selfstorage Italiane (AISI). Acting as the voice of the local industry, the organization aims to promote best practices and facilitate development. Inside Self-Storage spoke with AISI Business Developer Vanessa Digoncelli about the state of the market, new development, challenges and more.

What’s the state of the self-storage industry in Italy?

The Italian market is extremely interesting, and the possibility to open a self-storage facility is tangible. One needs desire, courage and expertise to invest. Between 2000 and 2006, the industry saw good numbers coming through; then the 2008 economic crisis changed that. However, in the last two years, we've seen a positive comeback of those initial results, and we foresee that it’s only going to get better.

What’s happening with new development?

In July 2017, Boxintown opened its doors a few steps from Vatican City. Located within a historical Roman building—with marble floors and 32 video cameras to survey just a little over 600 square meters—it really represents the first high-end Italian facility. It allows Roman citizens who don't own a cellar or extra room in their tiny city-center apartments to keep their belongings nearby.

This September we also expect a new self-storage operator to join the market. The facility is coming to life in L'Aquila in the Abruzzo region, just 120 kilometers from Rome. The fact that someone is building self-storage in an earthquake zone shows how much Italy is changing shape and the strong willingness to grow.

The project is an interesting one. It’s a smart combination of 66 storage units, 300 square meters of open space for offices and shops, and a remarkable 1,500 square meters of guarded parking. The owner strongly believes this will help grow Italians' awareness of self-storage as a very versatile industry where one can take risks and come up with new business concepts. Obviously, like all changes, this requires time and consciousness before turning into reality.

On the heels of this opening, Casaforte Self Storage has a new entry, its 23rd, expected to open in late 2018. It’ll be in the postcard-perfect city of Bolzano, not far from The Dolomites, a UNESCO (United Nations Educational, Scientific and Cultural Organization) World Heritage site. Architects are working on a multi-functional center, combining ground-level shops featuring big windows facing the main street as well as self-storage units.

Is the look and design of facilities evolving? How so?

Just like shops invest greatly in their look to give customers the best first impression, the self-storage industry takes this into account. Therefore, it’s giving more importance to its design and image.

On the other hand, though, Italy is a country with great rooted history where buildings can't be turned into extremely modern ones. Unlike in the United States, it's hard to find land to build something new. What operators can do is renovate old buildings and turn them into more attractive and clever ones.

What challenges is the association helping operators to overcome?

The legal aspect of the Italian self-storage contract is still something we're working on. Also, there’s the importance of insurance, so we’re spreading awareness of why it’s so critical.

What role does technology play?

Just as in the rest of Europe, technology plays an important role in the Italian self-storage industry. Facilities use video cameras and access-control systems.

A big change perhaps is the introduction of kiosks, which allow clients to sign a contract at a satellite facility without an operator present. With an ID and a credit card, anyone at a kiosk can communicate remotely to a self-storage operator and will be guided through the process of renting a unit. This will allow more flexibility and easier access to a self-storage solution for those working office hours or in an emergency.

Country Hills Storage has opened a new self-storage facility in Calgary, Alberta, Canada. The property comprises 50,750 rentable square feet in 905 units. It’s six miles south of two other company locations and will serve a population of 599,000 people living within a two-mile radius, according to a press release.

The facility features climate-controlled units, a covered loading area, electronic access, individual door alarms and video cameras for security.

Country Hills has three other storage facilities under development in Alberta, according to Dale Norlin, executive vice president of development. It has 25 properties in the province and 72 locations nationwide, according to the release.

Source:
Digital Journal, Country Hills Storage Expands in Alberta

Update 12/24/18 – The first floor of Jernigan’s three-story CubeSmart facility has opened. A small parking lot and loading dock at 1838 Washington Blvd. are also finished. Once complete, the building will offer 1,000 storage units, according to a source.

The storage facility replaces the two-story, 32,886-square-foot structure operated by DeBois Textiles Inc. CubeSmart purchased the 1.78-acre property from DeBois for $2 million in 2017, a source reported.

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Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has committed $10.8 million toward a proposed 83,450-square-foot self-storage facility in Baltimore. The multi-story, climate-controlled facility will comprise 993 units. It’ll be converted from a former textile office and warehouse, according to a press release. Construction is expected to start during the third quarter, with completion expected by June 2018. Annapolis, Md.-based 1835 Washington Self-Storage will serve as developer.

The target building site is on Washington Boulevard, an arterial road in and out of downtown. The property is less than a half-mile from Carroll Golf Course, Carroll Park and the Maryland Transit Authority. It’s directly across from Montgomery Park, which houses several state-service buildings. It will serve several neighborhoods including Arbutus, Catonsville, Federal Hill and Halethorpe. Federal Hill is a popular destination among young professionals for dining, entertainment and retail, the release stated.

This will be the first co-investment between Jernigan and this developer.

Jernigan Capital has closed 16 self-storage investments since Jan. 1 with a total commitment of $186.3 million. All of the facilities will be managed by CubeSmart, a real estate investment trust and third-party management firm.

Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm intends to be taxed as a real estate investment trust and is externally managed by JCap Advisors LLC.

Moove In Self Storage, which operates 24 locations in Maryland, New Jersey, New York and Pennsylvania, has acquired Trans-Am Self Storage in Lititz, Pa. Like other facilities in the Moove In portfolio, it’ll be managed by Investment Real Estate Management LLC (IREM), according to a press release.

Built in 1980, the property at 933 Lititz Pike includes five buildings comprising 23,400 square feet in 150 units. The 3-acre property was shared with Keller Bros. Motorsports until the dealership closed in March.

“Expanding into the Lititz area is a great decision for Moove In. We have nine other Lancaster-area locations, but we were missing a presence this far north,” said Dana Casella, director of operations for IREM. “We have exciting plans for this property and the town of Lititz.”

Moove In plans to demolish the dealership and build a three-story structure comprising 66,000 square feet of climate-controlled storage and a new rental office. Additional property improvements will include new perimeter fencing and a keypad-operated gate.

“We are so very excited to become a part of the Lititz community. We have been trying to bring the Moove In brand to this market since 2006, and we finally found the right location and transaction terms,” said John H. Gilliland, CEO and president of Moove In.

Founded in 1997, Moove In operates facilities in Baltimore County in Maryland; Berks, Huntingdon, Lancaster, Montgomery and York Counties in Pennsylvania; and Sussex County in New Jersey. IREM and Moove In are a part of Investment Real Estate Group Cos., which also includes Investment Real Estate LLC and Investment Real Estate Construction LLC.

To meet the demands of their wireless-telecommunications customers, companies like AT&T, Sprint, T-Mobile and Verizon continue to build new cell-tower sites across the country—some on self-storage properties. When negotiated correctly, this lease can be a great source of ancillary income for the storage business.

Here are some pros and cons to ponder when approached by a cell-tower company or wireless carrier who wants to use your property.

Pros

Additional income. When a cell-site agreement is properly structured, you can see immediate revenue, with initial monthly rent ranging from $1,000 to more than $3,000, depending on several factors. You can also realize additional revenue based on the utility and value being derived by the company’s use of your property. This can be achieved if additional subtenants are added to the tower or upgrades are made to the existing telecom equipment. However, the average self-storage owner leaves about $852,000 in revenue on the table due to an improperly structured lease.

Improved cell service. A new cell site won’t only serve the needs of wireless customers in the area, it can serve as an upgrade for services offered to your tenants. If you’re forward-thinking, you can even negotiate conditions that’ll allow for use of certain cell-tower infrastructure that can be used for future development projects.

Lump sum cash/capital. If you’re looking for capital to infuse into your self-storage facility, an option is to sell your cell-tower lease for a one-time lump-sum payment. The funds received can also be eligible for a 1031-exchange transaction. There are many third-party companies that’ll pay, however, make sure you understand the true value of your lease as well as the conditions and impact of selling it.

Cons

Community opposition. Many people have concerns about the health risks of living near a cell towner or rooftop cell-site equipment. Even though the American Cancer Society reports that it has found no direct link between cell towers and cancer, many still object to towers in their communities.

If you attempt to put a cell tower on your property, your neighbors could oppose. However, you can negotiate terms in the lease that will provide evidence that you have set certain inspection and compliance requirements in place. This will help ease community concerns and could eliminate any negative impact on the value of your property.

Operational impact. When a cell-tower company approaches you, it’ll sell the concept a certain way. For example, it’ll say the tower will be on a part of the property that’s “out of the way.” In truth, you aren’t just giving the company rights to a certain area; you’re accepting restrictions for your entire facility.

While a cell-tower company wants you to focus on the rent, you need to know exactly what you’re agreeing to and how it may impact future development, disposition or even financing of your property. Don’t take money in one hand only to give it away from the other!

Lease management. While you may have a wealth of experience in renting storage space, a cell-tower lease is a completely different animal. The reason most owners are being underpaid is they structured their lease incorrectly from day one. They started undervalued and it only got worse from there. A lease can provide significant ancillary revenue; unfortunately, most owners don’t understand how to optimize it. Moreover, they fail to navigate and manage it correctly throughout its term, thereby losing revenue that’s there for the taking.

Every transaction has its ups and downs, and a cell-tower lease is no different. You must understand that a typical agreement commits you for more than 30 years, with no way to terminate. While knowing how much rent you should receive is important, it’s just as critical to understand exactly what you’re agreeing to today and into the future.

Hugh D. Odom is president of Vertical Consultants, a telecommunications-consulting firm currently working with approximately 5,000 self-storage facilities across North America. Its clients include Extra Space Storage Inc. Life Storage Inc., and Simply Self Storage. Mr. Odom has more than 22 years of legal and telecom experience, including being an attorney inside AT&T for more than 10 years. For more information, call 877.456.7552; or visit www.vertical-consultants.com.

Update 12/21/18 – Big Yellow has received approval for a mixed-use project in Battersea that will include a 72,000-square-foot self-storage facility, 168 housing units and 18,500 square feet of artist-studio, office and retail space. The company’s current 34,0000-square-foot location in the district will be demolished after tenants are relocated to the new site. Construction on the new facility is scheduled to begin during the summer, with completion expected in 2020, according to a source.

“This was a large and complex proposal in planning terms, and success gives us considerable confidence in tackling other projects closer to the center of London as and when opportunities arise,” said CEO James Gibson.

Big Yellow is considering its options for the remainder of the adjacent property that isn’t part of the mixed-use plan. It could opt to sell it to another developer for additional housing, office and retail space, a source reported.

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9/18/18 – U.K. self-storage operator Big Yellow Group PLC has raised £67 million through a stock placement with which it intends to develop nine new facilities and expand two others. The company will invest a total of £102 million on the projects, which are expected to add about 680,000 square feet of storage space to its portfolio, a 15 percent increase. Additional money will be used to fuel long-term expansion goals, according to the source.

The company is expanding London facilities in Battersea and Wapping, and will build new London-area locations in Camberwell, King’s Cross, Queensbury and Uxbridge. It also intends to develop new facilities in Bracknell, Hove, Manchester, Newcastle and Slough, England.

Big Yellow expects the new square footage to immediately add about £17.4 million in operating income. Total development cost is around £198 million, the source reported.

The company placed 7.2 million ordinary shares through JP Morgan at 930 pence per share, which were available to existing and new institutional investors. Members of the board intended to invest a total of £265,000 during the placing, according to the source.

Big Yellow Group operates 96 self-storage locations in the United Kingdom under the Big Yellow Self Storage and Armadillo Self Storage brand names, with most concentrated in Greater London. Its total portfolio comprises 5.6 million square feet.

Sources:
City A.M., Big Yellow Bags Planning Permission for Extended Battersea Site
The Times, Green Light for Big Yellow Expansion