Johannesburg - Stor-Age Property will expand two of its existing self-storage properties in Cape Town at a cost of R44 million because of sustained high levels of occupancy and strong customer demand.
The fund said Stor-Age Gardens would be expanded by the addition of a further 5 500 square metres and Stor-Age Durbanville by the development of a further 2 500 square metres.
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Construction on the expansion of Stor-Age Gardens will commence this month to be completed by December, while construction will commence next month at Stor-Age Durbanville to be completed by January.
The company said both projects would be funded from existing debt facilities and were projected to be yield neutral within their first 12 months of trading and yield enhancing thereafter, providing an immediate uplift to the net asset value of the portfolio on completion.
Chief executive Gavin Lucas said the company had experienced a strong trading performance across its portfolio and particularly from these two properties despite the tough economic environment.
BUSINESS REPORT