Stor-Age, the leading and largest self-storage property fund and brand in South Africa has made its intentions clear - to buy 100% of the shares in Dancor for a sum of R145,000,000.
Dancor is a Durban-based company owned by StorTown and has a strong footprint in the region.
Stor-Age, a fairly young and vibrant company, had a successful listing on the JSE in November 2015 and currently services more than 18,500 tenants across its portfolio of 49 properties.
Stor-Age’s third consecutive period of growth since listing on the JSE in November 2015 has continued on a positive trajectory. The group delivered healthy growth in distributions, revenue and occupancies for the year in a still-challenging local economy.
But the news that really warmed shareholders’ hearts was the announcement of a dividend of 88 cents. This, for a new and young company, is a considerable feat.
credit: Graph Provided by Sharenet Advanced Online Charts
It was only in March this year that Stor-Age bought two other competitors, Storage RSA and Somerset West Business Park, for a total of R328,768,124.
"Our current five-year growth plan, now in its second year, sets broad targets to 2020 but, more importantly, details the strategic plan of ’how’ and ’where’ we intend on executing high-quality acquisitions and new developments in order to continue to strengthen and grow our asset base," says CEO Gavin Lucas.
"The Board is of the view that the Transaction supports Stor-Age’s stated strategy of pursuing value-added acquisitions in a fragmented industry in order to strengthen the group’s position as a premium South African self storage brand.
Implementation of the Transaction will provide Stor-Age with a broader geographical store offering across the city of Durban in locations which are complementary to the existing trading portfolio.
The intention is for all stores to be rebranded and added to Stor-Age’s sophisticated operations platform, with the majority of the value enhancement planned over time through key initiatives such as digital marketing, revenue management and increased scale in a key market."
Jeremy Woods trained for three years as a journalist on the Herts Advertiser, St Albans, in the U.K. Once qualified, he left England to work as a crime reporter on the Vancouver Sun in Canada. After three years, he worked for the Los Angeles Times as a trainee financial journalist, spending most of his time reading company accounts and finding publishable stories in them. He moved to South Africa and for the last five years in journalism worked for the Sunday Times, Business Times, as Investment Editor. He has also published a financial thriller called "Special Payments", which was a best-seller on publication, and optioned three times for a film.