Shurgard Bid for Lok'nStore will double UK size over time

This morning SHUR announced a public offer for Lok'nStore. It will double its size in the UK from 48 stores to 100 (including pipeline). It fits in their strategy to focus on large cities like London, South-East UK and Manchester. SHUR offers £11.10 per share for a total equity value of £378m. Latest reported NAV stood at £9.87 at FY23 end (12.5% premium). Occupancy declined from 82.9% to 80.6%. This probably eased the decision to sell as smaller players have trouble adjusting to the digital transformation. Shurgard benefits from its platform strategy and can integrate smaller companies for economies of scale. Typically they can reverse declining occupancy trends in the process. This name was mentioned at our conference presentation on 20/3, together with other targets. A possibility of a share deal for a public company was mentioned. This all cash deal does not automatically imply an imminent capital increase as the company prefers to raise capital before a transaction is announced.
Deal details