Big Yellow Group Plc (LON:BYG) announced that it has exchanged unconditional contracts to acquire the Wyvern Industrial Estate in New Malden, London for £28 million.
Big Yellow occupies approximately half of the estate, with an 81,000 sq ft net lettable area store, on an occupational lease which expires in 2026.
The acquisition removes two material risks; there was no certainty that the lease would have been renewed at its expiry, and the liability of future rent increases on this property could have been significant given its prime location in London.
The purchase will be funded by drawing down on the Group’s revolving bank facility, which, at its current marginal cost, will be earnings enhancing.
