STOR-AGE PROPERTY REIT LIMITED - Voluntary announcement pertaining to the acquisition by Stor-Age of All-Store self storage in Cape Town

Voluntary announcement pertaining to the acquisition by Stor-Age of All-Store self storage in Cape Town

Stor-Age Property REIT Limited
Incorporated in the Republic of South Africa
Registration number 2015/168454/06
Share Code: SSS ISIN ZAE000208963
(Approved as a REIT by the JSE)
(“Stor-Age” or “the Company”)

VOLUNTARY ANNOUNCEMENT PERTAINING TO THE ACQUISITION BY STOR-AGE OF
ALL-STORE SELF STORAGE IN CAPE TOWN

1.    INTRODUCTION
      The board of directors of Stor-Age is pleased to advise shareholders that the Company has
      entered into an Agreement of Sale with Ninety Nine Investments Proprietary Limited (“the
      Seller”) to acquire All-Store Self Storage (“All-Store”) in Cape Town’s Northern Suburbs (“the
      Acquisition”).

2.    RATIONALE FOR THE ACQUISITION
      The Acquisition is in line with Stor-Age’s strategy of pursuing value-added acquisitions in a
      fragmented market and strengthening the group’s position as the premium South African self
      storage brand.

      The Acquisition represents an excellent opportunity for Stor-Age to acquire a high quality self
      storage property in a location which complements its existing portfolio, providing Stor-Age with
      additional scale from both a balance sheet and trading perspective.

      Stor-Age will re-brand the acquired property and manage it from its existing operating
      infrastructure.

3.    ADDITIONAL INFORMATION
      The Acquisition is uncategorised in terms of the JSE Listings Requirements, and the
      information contained in this announcement has been voluntarily disclosed by the Company.

3.1    ABOUT ALL-STORE
       Based in Cape Town’s Northern Suburbs, All-Store has a well-established tenant base and
       trading history since its opening in 2006 and has been in operation for more than a decade.

       The well-constructed and aesthetically pleasing dual level property benefits from a prominent
       location and significant drive-by traffic, offering more than 5 500 m² of self storage space
       across two levels, consisting of 300 plus self storage units ranging from 4 m² to 36 m² in size.
       The property also benefits from having significant undeveloped bulk available.

       The established tenant base and trading history supports a level of occupancy which is
       characteristic of a ‘mature’ self storage property, at a rental rate of approximately R70 per m².

       Positioned directly opposite the intersection of La Belle and Bottelary Roads and servicing the
       greater Bellville, Brackenfell and Kuils River nodes as well as drawing from areas such as
       Protea Heights and Vredekloof, All-Store is well-positioned to benefit from the continued
       residential growth in the node along Bottelary Road.

3.2    CONSIDERATION
       The consideration for the Acquisition is R52 million payable in cash or, at the sole discretion
       of the Company, the purchase consideration may be settled in full or in part by the issue of
       ordinary shares in the Company pursuant to a vendor consideration placement.
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3.3    EFFECTIVE DATE
       The effective date of the Acquisition will be the date of registration of transfer of ownership
       into the Company’s name.

Cape Town
6 March 2018

Sponsor and Corporate Advisor
Questco Corporate Advisory Proprietary Limited




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