Safestore Holdings PLC on Thursday said it has acquired all of the joint venture in the Benelux region that it formed three years ago with Carlyle Europe Realty.

Safestore had owned 20% of the joint venture, with Carlyle Europe Realty owning the rest.

Safestore paid €67 million to Carlyle Europe Realty for the remaining 80% share, the Hertfordshire, England-based self-storage provider said. Safestore also will refinance €67 million of existing borrowings of the venture.

The deal was based on an enterprise value of €146 million for the joint venture.

The partnership was formed in 2019 to acquire and develop assets in the Netherlands and Belgium in order to leverage Safestore’s operating platform outside its core markets.

The venture’s portfolio of 55,000 square metres is currently 74% occupied, Safestore said. The portfolio consists of 15 properties, 9 located in the Netherlands and 6 in Belgium.

The new investment will be ‘marginally accretive’ to Safestore’s earnings per share in the financial year 2022, which ends October 31, and will support its future dividend capacity, it said.

The expected initial yield based on total enterprise value is 3.9%.

The acquisition will increase Safestore’s loan-to-value ratio to 31%. Financing capacity under its revolving credit facility and shelf facilities, alongside cash reserves, is expected to be around £219 million following the transaction, Safestore added.

‘We believe that the market fundamentals for European self-storage remain highly attractive and look forward to working alongside Safestore in identifying further opportunities on the continent,’ commented Marc-Antoine Bouyer, managing director on the Carlyle Europe Realty advisory team.

Safestore shares were 0.8% higher at 1,346.00 pence each in London on Thursday morning.

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