The £12m cash injection (including £lm from existing shareholders) gives The Big Yellow the scope to rapidly expand its operations in this fast growing industry.This marks the third corporate acquisition in twelve months by Prudential, following the acquisition of Arlington Securities Plc in October 1998 and Hemingway Properties PLC in August 1999.
Conveyancing specialists are prudential joins TR Property Investment Trust PLC on The Big Yellow share register, through its investment which comprises a mixture of ordinary and preference shares and convertible loan stock.In the United Kingdom and Europe the sector is still in its infancy with less than 300 centres operational, many of which are poorly located with low quality of service.
The Big Yellow is establishing itself as the quality provider of self storage services with the aim of having ten centres in London and the South East by the end of the year and then expanding into the UK and continental Europe in due course.
Commenting, Richard Mully of Prudential said: “We have been researching the self-storage market for some time and are convinced that there are enormous growth opportunities for this niche sector throughout the UK and continental Europe.
This is a strategic investment in a specialist company with great management, a strong brand and some excellent existing sites, all of which demonstrate its potential to become a dominant market leader in this emerging asset class.”Nick Vetch, joint Chief Executive of The Big Yellow, commented: “The addition of Prudential as an investor in The Big Yellow is a strong endorsement of the company and its concept.