Big Yellow Group plans JV buy
 
Wed, 19th November 2014
 
 

Big Yellow Group plans JV buy

Surrey-headquartered self-storage business Big Yellow Group is looking to raise cash through a share placing as it seeks to buy out joint venture partner Pramerica Real Estate Investors.

The Bagshot company plans to pay £39.25m for the two thirds of the JV which it does not already own. It will fund the move by placing 14.35 million ordinary shares of 10p each.

The JV, known as The Big Yellow Limited Partnership, was created in November 2007 and the portfolio consists of 12 stores located in Birmingham, Camberley, Edinburgh, High Wycombe, Leeds, Liverpool, Nottingham, Poole, Reading, Stockport and two stores in Sheffield.

It said the move would bring "significant benefits" operationally. The fundraising comes as Big Yellow Group released its financial results for the six months to 30 September 2014, a seasonally stronger trading period.

Revenues increased by 11 per cent to £39.9m, compared with the first-half a year ago, while adjusted profit before tax rose 29 per cent to £18.4m.

"The many problems and challenges, economic and political, are well documented, however we are confident that we have a business model and capital structure that allows us to meet them," said chairman Nicholas Vetch.

"Furthermore, the work on the brand, customer service, systems and operational strategy undertaken over the last few years, leaves us primed to take advantage of any improvement in self-storage demand.

"The core task of filling the stores is both achievable and within sight and we believe will deliver attractive growth in earnings and dividend."

 
 
category South East  |  source Insider Media