Monday 19 August 2019 7:49 am

Safestore joins forces with Carlyle in Dutch takeover

Safestore has joined forces with private equity giant Carlyle to buy a Dutch self-storage chain while making a £6.5m Heathrow acquisition by itself.

The business will take a 20 per cent stake in M3 Self Storage for around €5m (£4.6m) when the deal is completed at the end of August.

The deal, which is expected to produce eight per cent returns for the first year before transaction-related costs, will give Safestore and Carlyle a company which intends to expand further through acquisitions.

“The acquisition of M3 represents an excellent platform for entry into the attractive Dutch self storage market and we expect that our joint venture with Carlyle will enable us to target additional selected development and acquisition opportunities,” said chief executive Frederic Vecchioli.

M3 operates six storage units in Amsterdam and Haarlem in the Netherlands.

The deal came as Safestore also announced it had bought Heathrow-based Ready Steady Store for £6.5m in cash. The company expects the initial yield to reach 5.5 per cent in the first year at the 34,000 square foot site. It will rebrand the site.

Shares in Safestore rose 2.6 per cent to 638p this morning.