The Shurgard Group is expanding its UK self-storage portfolio after the completion of a privately placed debt offering of EUR300 million of senior guaranteed notes.
These notes are issued in three EUR100 million bullets of seven, 10 and 12 year maturities with an average coupon of 3.01 per cent.
The Shurgard Group intends to use the proceeds from the private placement, alongside a EUR125 million bank facility with a 3.5 year maturity from Wells Fargo, to refinance existing debt and for general corporate purposes including development.
The investment will see the Shurgard Group expand its UK portfolio where it currently has 22 stores across London and the Thames Valley. The intention is to build upon the established London network and open up to 16 new stores by 2018.
Jean Kreusch, chief financial officer, Shurgard Luxembourg Sàrl, says: “We are seeing an increasing demand from individuals and businesses that need more space. Self-storage offers a viable solution: for businesses to store equipment, stock or archives; and for individuals who need an everyday solution or just a temporary option when moving house. This refinancing provides Shurgard with an opportunity to grow our business and meet the demand.”