Shurgard 4 re-developments of car parks in France

Shurgard announced it has received building permits for 3 self-storage facilities in the central Paris region and 1 in Lyon through a partnership with INDIGO. This car park operator offers 4 car parks in the heart of these cities. Shurgard transforms these spaces into local service hubs, in line with INDIGO's strategy of supporting urban change (smart cities). Shurgard expects to realise a 8-9% yield at maturity. We like that Shurgard continues its development activities in 1 of its 4 core regions as most of the attention and fear of the market has focussed on acquisitions. Recently, there has been some pressure on the UK self-storage peers that seems to have dragged Shurgard along. Also fear on the European economy after the Trump protectionist agenda has hit all REITS. We believe that Shurgard will continue on its profit growth track record as Europe catches up with the US self-storage penetration.