"Eurobox is a good strategic and geographical fit for Self Storage Group with its leading local market position. The acquisition, in combination with the contemplated acquisition of the two properties at Skøyen and Kalbakken, underlines our ambitious growth strategy of increasing the company's freehold portfolio in selected markets in Scandinavia, in addition to carry out accretive acquisitions in a fragmented market", says Martin Nes, Chairman of Self Storage Group. 

In connection with the acquisition of Eurobox and the two properties in Oslo, Self Storage Group will launch a contemplated private placement raising gross proceeds of up to NOK 250 million. The company will after the private placement have financial flexibility to finance the Eurobox acquisition, the two additional properties in Oslo and future expansion opportunities through its combined debt capacity under the Company's existing loan facilities. 

Eurobox operates four high quality climate controlled sites in the greater Oslo region, ideally located close to the main roads in the urban areas of Oslo, Asker and Drammen. Three of the facilities are freehold, and one facility has a long-term leasehold contract. 

Self Storage Group will acquire Eurobox, consisting of four legal entities, for an enterprise value of NOK 320 million, on a cash free basis, which will be settled through a cash component of NOK 245 million and consideration shares worth NOK 75 million in Self Storage Group. The valuation of the consideration shares for the purpose of settlement will be equal to the subscription price in the contemplated private placement. The cash component and consideration shares will be transferred at the time of closing of the acquisition. The consideration shares will be issued based on a board authorisation granted by the company's annual general meeting held on 23 May 2019.  

Eurobox provides self-storage units to private individuals and businesses in the greater Oslo-area with facilities in Oslo, Asker and Drammen, and has a current lettable area of approximately 10,800 sqm. The three owned properties are located in Billingstad (Billingstadsletta 91) and Drammen (Austadgata 18 and Nedre Eikervei 37A). The facility located at Adamstuen in Oslo (General Birchs gate 16) is on a long-term leasehold contract.

"Eurobox has developed four quality sites in prime locations in an attractive region. The sites will be rebranded to the City Self-Storage concept and we expect to further improve the utilisation, efficiency and profitability when they become a part of the Self Storage Group. The acquisition leverages on the large untapped potential for self-storage in Scandinavia as urbanization and smaller living spaces cause increasing need for external storage solutions. To enhance these opportunities, we have established a solid platform for future growth with prime locations, leveraging on a lean and operationally focused organization to increase margins and target additional growth", says Fabian Søbak, Chief Executive Officer of Self Storage Group. 

Eurobox is owned by First Risk Capital, which was co-founded and is 54% owned by Carl August Ameln. Mr. Ameln was the founder of City Self-Storage in Norway. The Eurobox acquisition is expected to close in two tranches during the third quarter of 2019, with consolidation from 1 July 2019, and will be subject to ordinary closing conditions. The first closing will entail all companies other than Eurobox Billingstad and is expected to complete early July 2019, while the closing of Eurobox Billingstad will occur subsequently following completion of a statutory demerger of the relevant real property into that legal entity. 

In addition, Self Storage Group have agreed on the purchase price of two additional properties in Oslo, located at Skøyen (Hovfaret 11) and Kalbakken (Østre Aker vei 101). The closing of these transactions is subject to final purchase agreements, due diligence and board approval. The property at Skøyen has an estimated lettable area of 3,500 sqm, is located in an attractive commercial hub with a significant catchment area with higher income demographic, and has a property value of NOK 145 million.  The expected rent level is above the current average for City Self Storage in Norway. The property at Kalbakken has an estimated lettable area of 3,000 sqm, has excellent visibility and easy access from the main road, and has a property value of NOK 55 million. 

 The two transactions are expected to close during Q3 2019 and both facilities will be operated under the City Self-Storage brand. The acquisitions are in line with the groups strategy to grow the freehold portfolio in the greater Oslo area.