LONDON: Big Yellow Group announced the acquisition of an existing 53,000 sq ft self storage centre in Aberdeen for £10 million.
The store, currently branded as Simply Self Storage, is the only purpose-built self storage centre in Aberdeen, and will be rebranded as Big Yellow. The purchase price represents a starting 6% net initial year one yield which should grow to 9% within two years as the store benefits from being added to our digital platform. There is also surplus land which provides the opportunity for expansion.
Jim Gibson, CEO of Big Yellow commented: “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.”