Storage King, owned by Stor-Age Property REIT and Moorfield Real Estate Fund V, has added 302,400 sq ft to its UK portfolio through the acquisition of Storagebase.
The portfolio of four storage facilities was bought for £59m and is located in the south of England in Banbury, Wednesbury, Frome and Amesbury. The latter is a new 102,000 sq ft scheme, which is currently under construction and is expected to be brought online by summer. The other three sites were built in 2007, and since then have had a blended occupancy rate of 90% and an average rental rate of £22 per sq ft per annum.
The acquisition of the three mature properties represents a forward asset yield of 6.3% and an equity yield of 13.2% for Stor-Age. When including the Amesbury property, the acquisition represents a forward equity yield of 11.6%.
