Big Yellow Group PLC on Thursday said it acquired a 53,000 square foot self-storage centre in Aberdeen for £10 million.
The purchase price represents a starting 6% net initial year one yield, which the Surrey-based self-storage company expects to grow to 9% within two years.
The store is currently branded as Simply Self Storage and is the only purpose-built self storage centre in Aberdeen. It will be rebranded as Big Yellow.
Chief Executive Jim Gibson said: ‘This is an important acquisition for Big Yellow expanding our footprint in Scotland, where we now operate in three of the four main urban centres. Aberdeen, an important university and energy resources city, is currently benefiting from higher oil and gas prices, and in the longer term it will play an important role in the transition to renewables over the next 20 to 25 years. The acquisition is earnings enhancing.’
Shares in Big Yellow were down 0.2% at 1,285.00 pence on Thursday in London.
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