Self-storage firm acquires London industrial estate for £28m
Self-storage firm Big Yellow Group PLC has signed an eight-figure deal to acquire the freehold of an industrial scheme in southwest London.
The company has exchanged unconditional contracts to acquire the Wyvern Industrial Estate, located in New Malden, for £28m.
Big Yellow, headquartered in Bagshot, already occupies around half of the estate. The firm operates an 81,000 sq ft net lettable area store on an occupational lease expiring in 2026.
Annoucing the deal this morning (December 13), the firm said the acquisition has removed two material risks – the first being that there was no certainty the lease would have been renewed when it expired, and the second, that future rent increases on Wyvern Industrial Estate could have been “significant” given its prime location in the capital.
Big Yellow plans to fund the purchase by drawing down on its revolving bank facility.
Due to the facility’s current marginal cost, the company is expecting the acquisition to be earnings enhancing.
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