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JSE-listed self-storage property fund Stor-Age Property Reit Limited has entered into sale of rental enterprise agreements to acquire a portfolio of 10 established, income-producing self-storage assets from Xtraspace Properties (Pty) Ltd for a purchase consideration of R387 million.<\/p>\n
Concurrently, the group has secured a management agreement to oversee an additional six Xtraspace self-storage properties, expanding both its direct physical footprint and its third-party fee-earning management platform across South Africa\u2019s key metropolitan regions.<\/p>\n
Read: Stor-Age grows earnings as SA portfolio offsets UK slowdown<\/p>\n
The 10 acquired properties add 51 878 m\u00b2 of Gross Lettable Area (GLA) to Stor-Age\u2019s existing operations. The transaction carries an estimated R38 million in capital cost improvements.<\/p>\n
Simultaneously, under the terms of the two-year management agreement, Stor-Age will manage a further six Xtraspace properties, which will remain under the Xtraspace brand, with effect from the transfer date of the acquired portfolio.<\/p>\n
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Stor-Age noted that the dual-structured deal directly aligns with its dual-track growth model.<\/p>\n
\u201cThe acquisition is in line with Stor-Age\u2019s disciplined growth strategy of acquiring trading self storage properties that meet its investment criteria and represents an opportunity to expand the company\u2019s portfolio in key metropolitan markets across South Africa on an earnings accretive basis,\u201d it said.<\/p>\n
\u201cThe management agreement is also in line with the group\u2019s strategy of growing its third-party management platform.<\/p>\n
\u201cThe management agreement enhances Stor-Age\u2019s recurring fee income and broadens the company\u2019s self storage management capability across South Africa,\u201d it noted.<\/p>\n
Geographic reach\u00a0<\/p>\n
Established in 2007, Xtraspace operates 16 self-storage properties across the Western Cape, Gauteng, and KwaZulu-Natal. Stor-Age confirmed that the geographic spread of the Xtraspace portfolio across these three provinces complements its existing operational footprint, providing further asset diversification across major South African economic centres.<\/p>\n
It said that the R387 million purchase price will be funded utilising Stor-Age\u2019s existing senior debt facilities.<\/p>\n
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The company confirmed that post-transaction, its loan-to-value (LTV) ratio is expected to remain within its target range, and the acquisition is projected to be earnings accretive on a per-share basis.<\/p>\n
However, the transaction remains subject to customary conditions precedent, including unconditional approval, or approval on terms acceptable to the company, from the competition authorities in SA.<\/p>\n
The effective date of the transaction is anticipated to take place during the second half of Stor-Age\u2019s 2027 financial year.<\/p>\n
Read:
Stor-Age delivers 10-year milestone with dividend boost and growth outlook
Stor-Age posts modest 2.2% increase in interim dividend<\/p>\n
#StorAge #acquire #Xtraspace #properties #R387m #deal<\/p>\n","protected":false},"excerpt":{"rendered":"
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