JSE-listed Stor-Age Property Reit is buying 10 self-storage properties from Xtraspace Properties for R387m, expanding its footprint as it looks to accelerate growth in South Africa’s self-storage market.The acquisition will add 52,000m² of gross lettable area (GLA) to Stor-Age’s portfolio. The group has also entered into a management agreement to operate six additional Xtraspace properties, giving it immediate exposure to the entire 16-property portfolio and increasing its South African footprint to 80 properties with almost 500,000m² of GLA.CEO Gavin Lucas said the transaction would fast-track the company’s long-term growth strategy.“As we continue to execute our five-year property strategy to 2030, the Xtraspace acquisition accelerates our domestic growth plan by adding 10 established, trading properties to the portfolio, while the management agreement provides an immediate platform for further growth,” Lucas said.He said the acquisition was consistent with the group’s strategy of buying income-producing assets.“The acquisition is in line with our disciplined growth strategy of acquiring trading properties and represents a significant opportunity to meaningfully expand our portfolio in key metropolitan markets across South Africa on an immediate earnings accretive basis,” he said.The group’s portfolio is spread across the Western Cape, Gauteng and KwaZulu-Natal, and complements Stor-Age’s existing operations in the country’s main economic centres.Stor-Age will fund the acquisition through existing debt facilities and said its balance sheet would remain conservatively geared. The group’s SA Reit loan-to-value ratio stood at 26.7% at the end of March and is expected to remain within its target range after the transaction.The deal is subject to customary closing conditions, including approval by the Competition Commission.Business Day