LONDON - Safestore Holdings plc, a leading UK-based self-storage operator, has announced a significant expansion into the Italian market through a 50/50 joint venture with Nuveen Real Estate. The partnership has acquired Easybox, Italy's second-largest self-storage provider, for €175 million, marking Safestore's entry into Italy.
The joint venture includes a portfolio of ten existing stores and two turn-key developments, totaling a maximum lettable area of 780,000 square feet across key economic regions in Italy, such as Milan, Turin, Rome, Genoa, and Florence. The stores are noted for their strong performance and modern facilities.
Safestore's investment of approximately €45 million for its share in the joint venture is complemented by debt financing at the joint venture level. The company anticipates a slight negative earnings per share impact of 0.3p in FY25, with expectations of earnings per share accretion by FY27 as the new developments reach maturity.
Italy presents a strategic growth opportunity for Safestore due to it being one of the most underserved markets in Europe for self-storage, with a mere 0.02 square feet of self-storage space per capita, compared to the broader European average.
Frederic Vecchioli, CEO of Safestore, stated that the acquisition aligns with the company's strategic goals to penetrate new geographies with attractive growth potential. The CEO emphasized the high quality of the Easybox portfolio and the opportunity to apply Safestore's management expertise to the venture. He also projected a 10% cash-on-cash return upon stabilization of the investment.
Safestore, established in 1998 and listed on the London Stock Exchange (LON:LSEG) since 2007, operates an extensive network of self-storage facilities across the UK, France, the Netherlands, Spain, Belgium, and now Italy. This move is part of the company's broader strategy to expand its footprint in Europe, leveraging its experience and management capabilities in the self-storage sector.
The information for this article is based on a press release statement.
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