Lok'nStore Group PLC Property and new store pipeline update (4161A)
May 24 2023 - 1:00AM
UK Regulatory
TIDMLOK
RNS Number : 4161A
Lok'nStore Group PLC
24 May 2023
24 May 2023
Lok'nStore Group plc
Property and new store pipeline update
The board of Lok'nStore Group plc, the fast-growing self-storage
company, is pleased to announce a number of new value creating
transactions.
Highlights
-- Completion of a new 20-year lease at our existing Eastbourne store
-- Contracts exchanged for new Landmark Managed Store in Bromborough, Wirral
-- New Landmark store development continues with four new stores
expected to open in the next 12 months
-- Excellent trading at our recently opened Landmark store in Bedford
-- Trading is buoyant with stores revenue up 13.2% year on year
for the quarter ending April 2023.
New lease
We are pleased to announce the completion of a new lease for our
existing Eastbourne store. The new lease runs for twenty years with
a tenant only break clause after five years. As with all other
leased stores within the Group's portfolio, the new lease benefits
from being within the terms of the 1954 Landlord and Tenant Act.
The store has been trading successfully since its opening in
2003.
New store
Contracts have been exchanged on a site for a new 49,500 sq. ft.
Landmark store in Bromborough, Wirral. The site, which already
benefits from planning permission, will be owned by an existing
Managed Store client. Through our well-established Managed Store
program, Lok'nStore will receive one off fees for finding and
securing the site, development advice and use of the Lok'nStore
brand. Once open, we will receive a recurring monthly management
fee as a percentage of revenue and a valuable additional recurring
performance fee once returns reach an agreed level.
We expect the developer to be onsite in the coming months with
the store expected to open in late 2024.
Further new store pipeline progress
The new Landmark store in Bedford opened in February 2023 and
early trading has been excellent. Building work continues at our
new Landmark store developments in Peterborough, Staines, Basildon
and Kettering, all of which will be open in the next 12 months,
adding a further 208,000 sq. ft. of trading space to the
undersupplied UK self-storage market.
Our total pipeline of 11 secured new stores will result in the
Group operating 52 stores when fully developed. Of the 11 pipeline
stores, 6 have planning permission, of which 4 are on site.
Beyond our secured pipeline, we have four more sites progressing
with lawyers and continue to see many opportunities beyond this.
This pipeline of new stores will add considerable momentum to sales
and earnings growth over the medium term.
Trading momentum continues
Trading continues to be buoyant with stores revenue up 13.2%
year on year for the quarter ending April 2023.
Commenting on the recent progress Andrew Jacobs, Chair,
said:
"Trading continues to be excellent with stores revenue up 13.2%
year on year in the quarter ending April 2023. We continue to
deliver on our objective of opening more Landmark stores whilst
maintaining the strength of our balance sheet and remaining
conservatively geared.
"Our secured pipeline is now 11 stores which will add
considerable momentum to earnings growth in the coming years, and
we are continually assessing more new sites. The transactions
announced today, will add further value to the group, and
demonstrates that Lok'nStore is well positioned to build and open
more new stores in the under-supplied UK self-storage market".
-Ends-
Enquiries:
Lok'nStore
Andrew Jacobs, Chair
Ray Davies, Finance Director 01252 521 010
finnCap Ltd
Julian Blunt/Seamus Fricker, Corporate Finance
Alice Lane, Corporate Broking 020 7220 0500
Peel Hunt LLP
Capel Irwin/Carl Gough/Henry Nicholls 020 7418 8900
Camarco
Billy Clegg/Tom Huddart/Letaba Rimell 020 3757 4991
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
MSCFLFVDEIIVFIV
(END) Dow Jones Newswires
May 24, 2023 02:00 ET (06:00 GMT)
Lok'n Store (LSE:LOK)
Historical Stock Chart
From Apr 2024 to May 2024
Lok'n Store (LSE:LOK)
Historical Stock Chart
From May 2023 to May 2024