News blog

Safeland

• BY: Andrew Hore |
• POSTED: 03/02/2014 |

Property investor Safeland is buying out its partner in Safestay and demerging the hostel operator.

The Safestay joint venture was launched less than three years ago with Moorfield Real Estate Fund II Safeland’s partner. Safeland’s 20% stake cost £7,500 and it was valued at £1.5m at the end of September 2013. The strategy was to start a chain of tourism driven hostels and the first property was sold to the jv by Safeland for £3.8m. The first hostel, which has 413 beds, opened in Elephant & Castle in July 2012. Beds are sold for between £12 and £72 per night.

Safeland is paying Moorfield £6.2m for its 80% stake in Safestay. A placing at the time of the demerger and Aim flotation of Safestay will raise £7m. A profit share of £25,353 is being paid to Safeland director Larry Lipman.

Safeland has previously demerged Hercules Property Services, Bizspace and Safestore, which was taken private and then refloated. Hercules and Bizspace were both taken over.

At 36p a share, Safeland is valued at £6.07m.The Lipman family owns more than 70% of Safeland.

A general meeting will be held on 20 February so shareholders can vote on the proposals that will enable the demerger to happen.

Download the latest AIM Journal from http://wwww.hubinvest.com/AIMPDFJanuary2014_52.pdf