McCarthy’s has completed the sale of four self storage assets to operator Storage King, a UK-operated self storage company owned by South Africa’s largest self storage business, Stor-Age Property REIT Limited.
The facilities are located in the North East of England and have a combined lettable area in excess of 200,000 sq ft. The location, performance and ESG credentials offered by the portfolio resulted in interest from a range of purchasers, in what was a highly competitive process. The shareholders of McCarthy’s Storage World will retain the brand, along with their flagship store in Leeds.
Tom Caines, Director – Alternative Capital Markets, EMEA, JLL said, “It’s exciting to start the year with another sizeable portfolio transaction, with McCarthy’s representing one of the largest quantum deals to have concluded in the last few years. The McCarthy’s portfolio provided the perfect mix of high-quality new builds, supplemented by well-located income generating conversions. The sector continues to perform in much the same way as 2021, with clear appetite from operators and funds alike. Pricing was aggressive over multiple rounds of bidding, with the result demonstrating the further yield compression we have seen in regional markets in the past 18 months.”
Mike McCarthy owner and Managing Director of McCarthy’s Storage World said: “I’m delighted to have completed the transaction with Storage King, with the assets an obvious fit for their existing portfolio. I’m pleased my stores and colleagues are in the safe hands of the Storage King team. A key element of the deal was ensuring we kept our hub in Leeds, which we have retained alongside the McCarthy’s brand. We are already looking at some exciting new opportunities and will continue working with JLL to build a new platform. This will focus on developing new build assets in strategic locations with strong ESG credentials.”
Robin Greenwood, CEO at Storage King said: “We are pleased to have purchased this portfolio and I would personally like to thank both JLL and the McCarthy team for working with us through this process. This acquisition forms part of our growth strategy to increase the footprint of our portfolio across the UK, and we are excited to welcome the existing staff into our Group.”
In support of this transaction, the Group made use of its existing debt facilities with HSBC UK Bank Plc and Santander UK Plc.
JLL acted for McCarthy’s.
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