JSE-listed Stor-Age will acquire the Durban-based StorTown portfolio of self-storage assets from the DanCor Properties group, the self-storage real estate investment trust announced Thursday.
The StorTown portfolio comprises four well-tenanted and geographically attractive properties in Brackenhill, Durban central business district and Durban North.
Stor-Age's footprint will grow to five stores in Durban, offering more than 27 000 m² of gross leasable area (GLA).
“We are excited about this acquisition. It aligns with our strategy of targeting quality peers in a fragmented market, with a focus on the four major metropoles in South Africa on a complementary quality level to our existing portfolio," CEO Gavin Lucas said in a statement.
Going forward, the properties will be rebranded and included into Stor-Age’s operational platform, allowing for the benefit of economies of scale in the greater Durban market.
The acquisition will increase Stor-Age’s overall portfolio from 31 to 35 properties, as well as boost total GLA by more than 9% to about 255 000 m².