Stor-age raises R1.3 billion in oversubscribed book build

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Stor-age raises R1.3 billion in oversubscribed book build

Published Date: 2017-10-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

Stor-age raises R1.3 billion in oversubscribed book build

It will use the cash to fund recent acquisitions

Stor-age has raised R1.3 billion in an accelerated bookbuild, R400 million more than planned due to strong demand for the company's stock. It placed close to 111 million new shares at R11.50 each, a 2.54% discount to the traded price of its shares over the past 30 days and a 2.62% discount to Monday's closing share price.

The property REIT said the money would be used to fund recent acquisitions including Betterstore Self Storage and DanCor Properties. Last month, it said it was paying £53 million for a 97.3% stake in Betterstore, the owner of Storage King, in its first UK acquisition. It said the deal gave it a strong platform to enter international markets through an established player with local expertise. A further payment would be made to Betterstore's owners if Storage King's profit in the first year after acquisition met certain hurdle rates.

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Earlier this month, Stor-Age finalised a deal to buy DanCor in KwaZulu Natal for R145 million. Stor-Age said the acquisition would give it a bigger presence in Durban and is complementary to its existing trading portfolio. All stores will be rebranded and added to its operations platform and will benefit from its digital market, revenue management and increased scale.

Stor-age eased back 0.1% yesterday to close at R11.80.



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