Self-storage company Lok'nStore Group Plc executed a £10 million debt accordion with The Royal Bank of Scotland plc, thereby increasing its existing banking facility to £50 million.
The group also secured a term extension on the facility to until January 2023, with interest payments set at the London Interbank Offered Rate plus a margin of 1.40% to 1.65%. The facility was initially signed with the lender in January 2016, following which a two-year extension was agreed in January 2017, according to a release.
Additionally, Lok'nStore acquired a one-acre freehold site in Leicester, U.K., on which it will construct a new store with about 60,000 square feet of trading space, subject to planning. Roughly £8.5 million of the total investment will be funded from cash flow and the expanded facility, that will also be used to make site acquisitions and for working capital.
The company noted that the acquisition boosted its existing portfolio to 28 trading stores by raising the secured pipeline of new stores to seven in total. As part of its growth strategy, Lok'nStore is eyeing additional sites for purchase. It is planning a March opening for its store in Wellingborough, while the other U.K. stores in Dover, Exeter, Bedford, Ipswich, Bournemouth and Leicester are slated to open by the end of 2019.