The company being acquired is an operator of six storage locations in Amsterdam and Haarlem in the Netherlands.
Safestore will pay around €5mln for a 20% equity stake and will provide management services to the joint venture.
Safestore said it expects to earn an initial return on investment of 8% before transaction-related costs for the first full year reflecting its share of expected the joint venture’s profits and Safestore’s fees for management services.
The acquisition is expected to enhance the company’s earnings straight off the bat.
Safestore also revealed it has completed the acquisition of a 34,000 square foot freehold store located near Heathrow Airport in London for £6.5mln. This acquisition is also expected to immediately improve the company’s earnings.
Frederic Vecchioli, the chief executive officer of Safestore, said the company expects to continue acquiring and developing sites in its core markets of the UK and Paris but noted that the Dutch self-storage market, the fourth largest in Europe, is also an attractive proposition.
“The acquisition of M3 represents an excellent platform for entry into the attractive Dutch self-storage market and we expect that our JV [joint venture] with Carlyle will enable us to target additional selected development and acquisition opportunities,” Vecchioli said.