Group ac­quires Dur­ban port­fo­lio

The Star Early Edition - - COMPANIES -

STOR-AGE, the listed self-stor­age real estate in­vest­ment trust (Reit), has agreed to ac­quire the Dur­ban-based StorTown port­fo­lio of self-stor­age as­sets from the DanCor Prop­er­ties group. The value of the pro­posed trans­ac­tion was not dis­closed. The com­pany said yes­ter­day the port­fo­lio com­prised four well ten­anted and ge­o­graph­i­cally at­trac­tive prop­er­ties in Brack­en­hill, the Dur­ban cen­tral busi­ness district and Dur­ban North, and in­crease Stor-Age’s foot­print in Dur­ban to five stores of­fer­ing more than 27 000m² of stor­age space. Gavin Lu­cas, the chief ex­ec­u­tive of Stor-Age, said the ac­qui­si­tion aligned with their strat­egy of tar­get­ing qual­ity peers in a frag­mented mar­ket, with a fo­cus on the four ma­jor metropoles in South Africa.Lu­cas said the prop­er­ties would be re­branded and in­cluded into Stor-Age’s op­er­a­tional plat­form, al­low­ing for the ben­e­fit of economies of scale in the greater Dur­ban mar­ket.He said the ac­qui­si­tion will in­crease Stor-Age’s over­all port­fo­lio from 31 to 35 prop­er­ties and boost to­tal gross let­table area by more than 9 per­cent to about 255 000m². – Roy Cokayne

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