Storage company Lok'nStore sold its document storage business Saracen Datastore to Iron Mountain for £7.6m in a bid to shore up its balance sheet and support investment opportunities.
The move comes as the company ramps up capital to reinvestment into fast growth landmark self-storage stores and pay down debt.
In the short term, the proceeds from the sale would be used to reduce overall group borrowing and would improve all key banking ratios, the company said.
The company estimated its loan-to-value ratio would decrease from 19.7% to 15.1%; net asset value per share to increase from £4.80 to £4.89.
'We are reallocating capital to enhance the efficiency and quality of our portfolio and expand our asset value whilst further strengthening our balance sheet,' said Andrew Jacobs, CEO of Lok'nStore.
At 8:58am: (LON:LOK) Lokn Store Group PLC share price was +10p at 412.5p