PRETORIA – Stor-Age, the listed self-storage real estate investment trust (Reit), has agreed to acquire 12 purpose-built self-storage properties located in Cape Town, Joburg, Durban, Port Elizabeth and Pretoria that were operated by the company for a total of R58 million.
It has acquired the properties by the purchase of 100 percent of the issued share capital in Roeland Street Investments 2 and Roeland Street Investments 3.
Roeland Street Investments 2 is owned by listed Growthpoint wholly owned subsidiary Acucap investments, Stor-Age Property Holdings (SPH) and the Fairstore Trust, and Roeland Street Investments 3 by Acucap and SPH.
Stor-Age said yesterday that the acquisition was in line with its stated intention of acquiring the managed portfolio and its strategy of further consolidating its market-leading position in the South African market.
It said once concluded, the acquisition would increase the value of Stor-Age’s investment property portfolio to about R5 billion, with 70 percent by value located in South Africa and the balance in the UK.
The company added that the gross lettable area of the South African portfolio would increase to 353 000m2 with an occupancy level of 83 percent and an average rental of R95 a square metre.
The transaction is still subject to several conditions, including the approval of the competition authorities, but is expected to be concluded by October 1.
It constitutes a small related party transaction as SPH is 100 percent owned by Stor-Age Property Holdings Trust.
Stor-Age said its dividend guidance provided in June for the year to March 2019 was unchanged.