UK self-storage group Big Yellow has teamed up in a £150 mln (EUR 208 mln) partnership with funds managed by Pramerica Real Estate Investors to develop up to 25 stores in the Midlands, the North of England and Scotland.
UK self-storage group Big Yellow has teamed up in a £150 mln (EUR 208 mln) partnership with funds managed by Pramerica Real Estate Investors to develop up to 25 stores in the Midlands, the North of England and Scotland.
Big Yellow and Pramerica are investing up to £25 mln and £50 mln respectively into the partnership, of which £4.5 mln and £9 mln respectively, will be invested on 30 November. All further investments into the partnership by Big Yellow and Pramerica will be in the ratio of one third and two thirds respectively. The partnership has also secured a five-year non-recourse loan of £75 mln from Royal Bank of Scotland to provide investment and
development funding.
Commenting on the partnership with Pramerica, Big Yellow's CEO James Gibson said: 'Joining forces with this prestigious institution will allow us to continue to expand with confidence into the northern part of the UK, whilst at the same time improving the financial performance of the group. Further it will release funds for deployment into the South of England where we expect to see more opportunities in a less competitive property market.'
Big Yellow now operates 45 stores, 44 in London and the South, and one in Leeds, with a further 27 stores in development. The portfolio provides a total of 418,000 m2 of flexible storage space.