Access Self Storage completes £250m five-lender refinancing

Access Self Storage, the UK’s third largest self-storage operator, has completed a comprehensive circa £250m refinancing of its 57-strong property portfolio with five lenders.

Screen shot 2013-07-25 at 14.37.07CoStar News understands that there were four separate refinancings, each secured by a separate property company within the wider opco-propco group framework, ultimately owned through the Liechtenstein-incorporated Alamut Foundation which ultimately owns Access Self Storage.

In the first and largest of four separate refinancing streams, CoStar Newsunderstands that GE Capital Real Estate provided a five-year £95m senior loan, priced at around 460 basis points over three-month LIBOR.

There is also a coterminous duration circa £17m mezzanine loan secured by the first of the four ring-fenced portfolios – dubbed the Enddora portfolio – provided by LaSalle Investment Management, with an internal rate of return (IRR) of around 12%.

The Enddora portfolio, secured by 23 stores, has a valuation of around £153m, which implies an GE Capital’s senior loan LTV was 62%, while LaSalle’s mezzanine loan was around 73% LTV.

In the second and third streams, HSBC provided a £55m senior loan and Wells Fargo provided a £45m senior loan.

The four facilities repay the maturing £158.4m Access Portfolio loan in the Morgan Stanley-issued Triton ELoC 26 CMBS, as well as the £25m B-note underneath the securitisation.

Noteholders in the Triton ELoC 26 CMBS, as well as the junior lender, thought to have remained Morgan Stanley, will be repaid at today’s (25 July) interest payment date.

The aggregate circa £212m provided by GE Capital, LaSalle, HSBC and Wells Fargo was greater than the outstanding securitised senior loan and the B-note, together the outstanding balance was £184.3m.

This approximate £28m difference allowed legacy bilateral lender, The Royal Bank of Scotland, to reduce its overall commitment to Access Self Storage, taking around £40m in the fourth segregated pool, completing the refinancing.

HSBC, Wells Fargo and RBS are all understood to have extended five-year loans, at between 60 and 65% LTV, and at margins considerably lower than the 460bps which GE Capital agreed, reflecting a much more stabilised part of the overall Access Self Storage property portfolio.

The comprehensive £252m refinancing completes a 15-month process, managed by Savills Capital Advisors, in which Access Self Storage initially sought two refinancing streams: a £210m stabilised portfolio and a £70m less stabilised portfolio.

The refinancing was completed in stages, with all senior lenders secured by early June, leaving the securing of LaSalle’s mezzanine as the final part of the jigsaw.

Access Self Storage is owned by the Lalji family, one of Canada’s wealthiest families, who acquired the company from Security Capital Group in 2004, which itself was acquired by GE Capital

In the UK, Access Self Storage operates 57 self storage facilities and provides a total self storage capacity of approximately 2.9m sq ft of space.

The Lalji family committed to growing its UK self storage business by focusing on high growth areas in Greater London within the M25.

In May, CoStar News reported that Access Self Storage had gained consent for a change of use from industrial to offices that will see a Grade II-listed former Ford Motors warehouse redeveloped as a striking 115,000 sq ft headquarters building in Hammersmith, west London.

All parties declined to comment.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
Gallery | This entry was posted in Uncategorized and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s