Johannesburg - Stor-Age Property has entered into a memorandum of understanding to acquire 100 percent of the shares in Storage RSA, the third-largest self-storage operator.
Storage RSA was established in 1997 when it opened its first store in Somerset West and now has a portfolio of seven high-quality properties, of which four were located in Cape Town and the rest in Gauteng.
Stor-Age said it believed the proposed acquisition was in line with its stated strategy of pursuing value adding acquisitions in a fragmented industry to consolidate its position as a dynamic brand in the domestic market.
“From a sector perspective, concluding the deal would solidify and significantly contribute to Stor-Age’s position as a significant self-storage operator and property fund in the South African market. While there is some room for immediate value enhancement of the portfolio through Stor-Age’s sophisticated operations platform, the majority of this value enhancement will occur over time through key initiatives such as digital marketing, revenue management and scale in key markets,” it said.
Stor-Age shares were unchanged at R10 yesterday.