Big Yellow sells to expand
Article Date: Jun 25 2008Self storage specialist Big Yellow Group has agreed to sell four of its sites to a business it formed with Pramerica Real Estate Investors, part of Prudential Financial. The sites, which are still under development, are being bought by Big Yellow Limited Partnership, in which the vendor holds a third of the equity.
The acquisition provides an additional 235,000 sq ft of storage space for the partnership in Camberley, High Wycombe, Poole and Reading. It expands the number of properties in its portfolio to 11, of which one is open for business and a further six have been granted planning permission.
The acquirer is also set to buy a site in Stockport from a third party, which will be developed into a 60,000 sq ft storage centre.
The five sites will cost the partnership £14.9 million in cash, with completion expected in early July. Big Yellow will invest the proceeds of the sale into its core London business, as well as re-investing in the partnership.
Big Yellow chief executive James Gibson says the deal allows the group to expand throughout the UK and improve its financial performance.
The partnership will continue to add new developments to its business with future acquisition targets to include sites in the Midlands and the North of England.
Big Yellow was founded in 1998 by Nicholas Vetch, Philip Burks and James Gibson and has been listed on the official list of the London Stock Exchange since 2002. The group operates 49 stores, including those owned by Big Yellow Limited Partnership. Of these, 48 are in the South of England with one in Leeds. When building work has finished the portfolio will provide some 4.6 million sq ft of storage space.
