TIDMLOK
RNS Number : 6257N
Lok'nStore Group PLC
02 February 2021
02 February 2021
Lok'nStore Group plc
("Lok'nStore", the "Company", "We" or the "Group")
Update on new store pipeline
Lok'nStore, the fast-growing AIM listed self-storage company, is
pleased to provide the following update on its new store
development pipeline.
Highlights:
-- Staines: Exchanged contracts on a new 56,000 sq. ft store in
Staines, Middlesex, due to open in 2022;
-- Peterborough: Purchased a freehold site in Peterborough,
Cambridgeshire, with planning to be submitted for a 50,000 sq. ft.
landmark store;
-- Bournemouth: resolution to grant planning permission for our
largest ever Landmark store at c. 76,000 sq. ft.
-- Warrington, Salford, Stevenage and Wolverhampton:
Construction is underway at these new store locations;
-- Sale of our vacant property in Southampton, Hampshire for GBP1.69 million
When developed our current pipeline will add 33.1% to our total
lettable area, as shown in the table below;
Pipeline Pipeline
Analysis of Stores No of Stores Pipeline adds adds
As at 31 Jul 2020 Stores Trading Total sq.ft. % Total
--------------------------- ------- ---------- --------- ---------- ----------
Owned Stores
Trading - Freehold 17 17
Trading - Leaseholds 8 8
Pipeline (Freehold) 7 - 7 398,400 46.0%
Pipeline (Leasehold) 0 0
------- ---------- --------- ---------- ----------
Total Owned Stores 32 25 7 398,400 31.3%
Managed Stores (Trading) 11 11
Managed Stores (Pipeline) 4 - 4 194,300
Total Managed Stores 15 11 4 194,300 37.7%
------- ---------- --------- ---------- ----------
Total 47 36 11 592,700 33.1%
--------------------------- ------- ---------- --------- ---------- ----------
In Staines, Middlesex, we have exchanged contracts on a 250 year
long leasehold site (an effective freehold). This prominent site
already benefits from planning consent and will be developed by XLB
Property incorporating a national discount food retailer. The store
will be 56,000 sq. ft. and will open in 2022. Total investment will
be c. GBP9 million.
In October 2020, we purchased a freehold site in Peterborough,
Cambridgeshire, subject to planning permission. The site occupies a
central location in the city, prominently positioned on the access
route to a large and busy retail park. A planning application for a
landmark 50,000 sq. ft. store will be submitted shortly. Total
investment will be c. GBP6 million.
Recently, Bournemouth Council resolved to grant planning
permission for a new landmark store on our site in Bournemouth,
Dorset. When developed, this landmark store will add c. 76,000 sq.
ft. of storage space and will be our largest store.
We have now started building at our new store developments in
Warrington, Salford, Stevenage and Wolverhampton with Salford
opening first in March 2021. Our total secured store pipeline is
now 11 sites which will take us to 47 stores when fully developed.
We have two further sites progressing with lawyers.
In December 2020, we completed the sale of our vacant property
in Southampton, Hampshire for GBP1.69 million. (Net Book Value c.
GBP2 million) eliminating over GBP150,000 p.a of residual
costs.
These new stores will be funded out of our existing revolving
credit facility, operating cash flow, proceeds of sale of surplus
land and managed stores. Net debt will rise to around GBP60 million
in FY2023 against our current bank facility of GBP75 million with
an accordion that would increase the facility limit to GBP100
million. The loan-to-value ratio (LTV) will increase to between 20%
and 25%.
The Group issued an update on Monday on its acquisition of the
Lok'nStore managed store in Chichester and the sale and manage-back
of its freehold land site at Pantheon Park, Wolverhampton. This
transaction is included in the table above.
Lok'nStore will be publishing its first half trading, pre-close
statement on Monday 8th February 2021.
Commenting on the recent progress on the new store pipeline
Andrew Jacobs, Executive Chairman, said:
"We continue to execute on our objective to open more Landmark
stores whilst maintaining the strength of our balance sheet and
remaining conservatively geared. In recent months we have continued
to progress the development of our new store pipeline with further
new acquisitions and commencement of building works.
"Our total secured pipeline is now 11 stores and we are on site
at four of these that will open by the beginning of 2022. Two
further sites are progressing with lawyers. The pipeline of new
stores will add considerable momentum to sales and earnings growth
allowing further increases in dividends."
"We look forward to updating the market on our first half
trading in our pre-close statement on Monday 8th February
2021."
-Ends-
Enquiries:
Lok'nStore
Andrew Jacobs, Executive Chairman
Ray Davies, Finance Director 01252 521 010
finnCap Ltd 020 7220 0500
Julian Blunt/Giles Rolls, Corporate Finance
Alice Lane, Corporate Broking
Camarco 020 3757 4991
Billy Clegg/Tom Huddart
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDDFLFBFLLXBBK
(END) Dow Jones Newswires
February 02, 2021 02:00 ET (07:00 GMT)
Lok'n Store (LSE:LOK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lok'n Store (LSE:LOK)
Historical Stock Chart
From Apr 2023 to Apr 2024
