Thursday, 16 November 2017 16:23

Stor-Age Property REIT concludes StorTown acquisition expanding KZN footprint

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Stor-Age has expanded their portfolio by having now concluded the acquisition of StorTown, KwaZulu-Natals largest self storage facility, from the DanCor Properties Group.

StorTown

The deal will see South Africas only JSE listed self storage REIT dominate the regions self storage market.

Stor-Age has subscribed to 99.9% of the shares in DanCor for R1.45-billion, an acquisition which marked another milestone for development of a company which has been on a positive trajectory since their acquisition of Storage RSA in November 2016, and their expansion into the UK with the recent acquisition of Storage King. 

Included in the StorTown portfolio are four well tenanted and attractively located properties situated in Brackenhill, Durban CBD and Durban North. The StorTown properties will be rebranded and included in Stor-Age’s operational platform.

“We are excited about this acquisition as it allows us to further expand across KZN,said Stor-Age CEO Gavin Lucas. “It perfectly reflects our strategy of targeting quality peers in a fragmented market, with a focus on the four major metropoles in South Africa. Of course, we are looking for quality that compliments and enhances our existing portfolio. We believe that this acquisition will further cement our position as South Africa’s premium self storage brand.”

Offering more than 27 000m² in Gross Lettable Area (GLA), the acquisition has boosted the company’s total GLA by more than nine percent.

Now in its second year of a strategic growth cycle ending 2020, Stor-Age intends to grow the portfolio and enhance investor returns by extracting organic growth through active revenue management. In addition, the company is focused on developing additional GLA and optimising the unit mix of each properties.

Head of Sales, Marketing and Product for Stor-Age, Chris Oosthuizen said: “The advancement of the Stor-Age brand into Durban, through the StorTown acquisition, indicates our success as the largest self storage property fund and brand in South Africa. Self storage continues to display its recession-resilience and the company is well-positioned to continue withstanding the tough economic trading conditions.

Last modified on Friday, 17 November 2017 09:38

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