The land of 2,393 square metres, valued at R19-million, is well-located to serve the residential areas of Craighall, Craighall Park, Hyde Park, Dunkeld and Blairgowrie, with the broader catchment areas characterised by dense living spaces. The property is further supported by an established retail and business corridor along Jan Smuts Avenue. Development is set to be complete in mid 2019.
The total purchase consideration payable by Stor-Age is R95 million.
“The transaction structure aligns with Stor-Age’s measured approach to the risk profile of new developments, which focuses on opportunity while limiting downside risk for distributions growth profile over the medium term,” said Stor-Age CEO Gavin Lucas.
The development forms part of Stor-Age’s five year strategy to develop and own self storage properties in prime, high visibility locations in key suburbs in target cities across South Africa.
Earlier in the week, Stor-Age also announced the acquisition of a self storage property in Crewe, United Kingdom, for a total of £7.74-million. The acquisition of the property, which has a GLA of c. 4 400 square metres, comes following Stor-Age acquiring the UK’s sixth largest self storage operator, Storage King, for approximately R1.3-billion.
Stor-Age now trades from and manages a portfolio of 62 properties across South Africa and the UK, covering a GLA of more than 387 000 m². The Craighall property is one of 5 additional properties that Stor-Age have in the pipeline.
The share closed yesterday at R12.70.