U.K. self-storage operator Big Yellow Group PLC is acquiring the Wyvern Industrial Estate in New Malden, England, southwest of London, for £28 million. The company currently operates an 81,000-square-foot facility on the grounds that consumes about half of the complex.
Big Yellow opted to purchase the property so it wouldn’t have to renew its lease, which was set to expire in 2026. Company officials believed future rent increases were likely to be “significant,” the source reported.
The deal will be funded through a revolving bank facility. Officials believe the addition of the property to its owned portfolio will be “earnings enhancing.”
In September, Big Yellow raised £67 million through a stock placement 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. At the time of the announcement, officials also indicated additional money would be used to fuel long-term expansion.
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.
Source:
Bdaily News, Self-Storage Firm Acquires London Industrial Estate for £28M