Safestore Holdings PLC said Friday that it has entered the German self-storage market through a new joint venture with investment company Carlyle Group Inc., which has acquired the seven-store myStorage business.
The London-listed self-storage company
CRM,
said that its initial investment is 2.2 million euros ($2.3 million) in equity, in return for a 10% share of the venture. It will also earn a fee for providing management services.
Safestore said it expects an initial return on investment of around 15% for the first full year, before transaction-related costs.
The myStorage business has a total maximum lettable area of 326,000 square feet, and represents a good opportunity to develop the platform in the attractive German market, Safestore said.
“Germany is one of Europe’s most under-penetrated self-storage markets and I look forward to growing our presence there,” Chief Executive Frederic Vecchioli said.
The company also said it has secured a freehold site in Rotterdam, the Netherlands, for construction of a store with a maximum lettable area of 71,000 square feet, subject to planning.
Write to Joe Hoppe at joseph.hoppe@wsj.com
