Safestore enters Netherlands market in self-storage acquisition

Safestore has formed a joint venture with Carlyle European Estate Fund to acquire self-storage company M3 Self Storage in the Netherlands. M3 Self Storage operates six storage locations in Amsterdam and Haarlem. Safestore will invest circa €5m (£4.5m) for a 20% equity stage in the business and will provide management services to the jv. It said it expects to earn an initial 8% return on investment before transaction-related costs for the first full year. In a statement released by the jv, the partnership announced it “intends to invest in further development and acquisition opportunities”. The deal is expected to complete by the end of August. Safestore also announced that it had acquired a 34,000 sq ft freehold store located near Heathrow Airport for £6.5m in a separate deal. Safestore chief executive Frederic Vecchioli said: “Since 2016, Safestore has successfully invested or committed circa £180m in 38 stores, acquisitions and new developments in its core markets of the UK and Paris which are delivering consistent strong returns. We expect to continue to develop and acquire in these markets. “The acquisition of M3 represents an excellent platform for entry into the attractive Dutch self-storage market and we expect that our jv with Carlyle will enable us to target additional selected development and acquisition opportunities.” To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette