Self-storage firm Big Yellow has sold an industrial estate in Harrow, London, for £38.4m.
The proceeds from the disposal will be used to fund the delivery of 11 new stores and one replacement store on land owned by the group.
On a proforma basis, the new stores are expected to generate net operating income of £35m, representing an income return of 16.5% on the £212m cost of building the stores.
The new store developments will be completed within the group’s existing funding arrangements and the group continues to forecast a net debt to EBITDA ratio of between 3.5x and 4x over the short to medium term, trending over time to the board’s preferred level of up to 3.5x.
