Self-storage company Big Yellow has agreed a £150m joint venture with Pramerica Real Estate Investors to develop new stores in the Midlands, the North and Scotland.

The investment partnership will help Big Yellow’s expansion into these areas by providing funding for the development of up to 25 new stores.

Big Yellow will invest up £25m in the partnership, and Pramerica will invest up to £50m. A five-year non-recourse loan of £75m has been secured from Royal Bank of Scotland.

Less competitive market

Big Yellow will sell five of its development sites and its existing stores in Leeds to the partnership for £20.3m.

James Gibson, chief executive of Big Yellow, said: ‘Joining forces with this prestigious institution will allow us to continue to expand with confidence into the northern part of the UK, whilst at the same time improving the financial performance of the group.

‘Further it will release funds for deployment into the South of England where we expect to see more opportunities in a less competitive property market.’