Safestore has joined forces with private equity giant Carlyle to buy a Dutch self-storage chain. The business will take a 20 per cent stake in M3 Self Storage for around €5m (£4.6m).
The deal, which is expected to produce eight per cent returns for the first year before transaction-related costs, will give Safestore and Carlyle a company which intends to expand further through acquisitions.
“The acquisition of M3 represents an excellent platform for entry into the attractive Dutch self-storage market and we expect that our joint venture with Carlyle will enable us to target additional selected development and acquisition opportunities,” said chief executive Frederic Vecchioli.
M3 operates six storage units in Amsterdam and Haarlem in the Netherlands which are all expected to be re-branded as Safestore stores.