This week, Canadian self storage company Less Mess Storage Inc. finalized the purchase of five self storage facilities in the Czech Republic and Poland. After putting the finishing touches on the deal, the company expects to break into the self storage market. Previously a mineral exploration firm known as DGM Minerals Corp., the company overhauled its image and made operational and name changes. In addition to these changes, the company also appointed Guy Pinsent as president and CEO, taking over from Peter Smith who will stay on in a new role as chairman of the board and vice president of corporate development.
The deal has been in the making as early as January 2014 when Less Mess Storage Inc. issued a press release which described the transaction and its assets. After announcing its intention to buy the properties in November 2013, the company signed an agreement that will have five facilities under its control. It also agreed to consolidate the current and outstanding shares on a 10-to-1 basis.
The two properties located in Warsaw, Poland in the Krakowska and Torunska areas while the other three in Prague are in the communities of Dejvice, Holesovice and Pankrac. According to Pinset, “This acquisition represents an important first step in building a substantial self storage business in a high-growth region with almost zero market penetration—a huge opportunity.” He continued, “The five stores acquired, four of which are freehold properties in excellent locations in Warsaw and Prague, are generating growing cash flow with further upside potential. Poland and the Czech Republic, which have just celebrated 10 years' membership of the European Union, have robust macroeconomic outlooks, which will further underpin the self-storage story. We now have a lot of work to do in rebranding, restructuring and rolling out the business.”
In addition to the new self storage sites, the company also announced that it has 815, 000 stock options for officers, directors, and consultants. As the largest self storage chain in Central and Eastern Europe, Less Mess Storage Inc., also has offices located in Vancouver. The rise of self storage in the international market indicates that the rest of the world is finally catching up the million dollar market that has been the self storage industry in the United States for the past few decades.