United Kingdom
Storage Investment | Self Storage Investment
Page Updated: 10th December 2011
Investment Summary:
Our latest investment is the first ever of its kind in the UK. The StorePod gives you the chance to invest in affordable self-storage commercial property and enjoy a guaranteed income for 6 years. This new concept brings you income immediately as each StorePod is pre-let prior to completion with returns paid quarterly in advance.
Indicators from the US and Australasia show that the UK market has huge growth potential and demand is currently high due to the lack of supply. Our development partner's highly competitive business model (nearly 45% lower rates than market leaders such as Big Yellow and Safe Store) and aggressive marketing strategy will ensure both security and future growth from this investment.
Key Investment Points
- Newly Built, Tenanted and Operational.
- Enjoy income immediately.
- 10% NET average annual yield, secured for 6 years.
- Yields set to increase to over 20% NET inline with sector and company growth.
- Exchange and complete within 21 days.
- No finder's fee.
- Income paid quarterly in advance.
- Entry-level investment packages from £11,250 with full legal ownership title.
- VAT exempt investment.
- A managed, maintained and insured investment.
- SIPP & SASS compliant.
- Defined exit strategies.
What is a StorePod?
A StorePod is a single storage unit between 25 sq ft to 200 sq ft within a managed Self Storage Centre. Aimed at both private individuals and businesses, customers can store anything from personal belongings or furniture to office equipment or surplus stock in a secure and safe facility with 24/7 access.
While our development partner's business model is similar to other successful self-storage companies they have enhanced their offering with an aggressive profit driven marketing strategy and prices that are nearly 45% lower than the nearest competing PLC.
All our StorePods are:
- Located in thriving Office and Commercial Business Parks close to highly populated areas.
- Easy to access from the motorway.
- A short drive from major towns and cities.
- Highly visible to large volumes of passing traffic.
Why invest?
- Income Producing From Day 1:
StorePod's are pre-let prior to your exchange with a 6 year agreement to sub-let to the Management Company who then let the units, under license, to end users. - Average Returns of 10% NET for 6 years:
Income is paid quarterly in advance. Yield increases every two years rising to 12$ NET in year 5 and 6. The 6-year leases are renewable ensuring progressive returns. - Self-Storage Is A Growing Sector:
UK self-storage companies have seen the highest growth and highest yielding returns within the commercial property sector over the last decade. The concept started in the 80s and there are now more than 800 facilities across the UK. - Growth Of 8 - 15% Even In Recession:
Sector growth rates of up to 15% during the last five years have been fuelled by multi-site operators and Private Equity Funds looking to diversify. - Market Penetration Is Still Low Compared To Developed Markets:
The UK has just under 0.5 sq/ft per person compared to the US, which has more than 7.4 sq/ft per person - and the US market is still growing at 10-15% per year. - Demand Exceeds Supply:
The demand in the UK is clear due to the limited supply of storage space. Private Equity funds are now aggressively raising capital to fund the construction of multiple sites over the next 6 years. - Low Starting Rents Mean Potential Increases In Resale Value:
StorePod's are rented at £8.17 per sq ft - nearly 45% lower than the nearest competitors - allowing headroom for rent rises and increasing yields. These in turn increase the resale value.
What's the package?
- Each investment package of £11,250 is based on purchasing a 25sq ft and 50 sq ft StorePod under legal title just as you would an apartment.
- Each StorePod is sold with a single Title Deed registered in your name at Land Registry.
- Income is secured via a 6-year lease entered into on completion.
- All funds are handled by UK solicitors.
- Pay a £1500 Reservation Fee to secure your StorePod investment.
- Exchange and complete within 21 days.
- Building and contents are covered by a fully comprehensive insurance policy.
What's the exit strategy?
Medium term
- High profitability.
- ROI at 230.67%.
- Rent per square foot scheduled to grow from £17 in years 1 and 2, to £21 per square foot in years 3 and 4; to £25 per square foot in years 5 and 6.
- Capital value forecasts of £13,600 in years 3 and 4; £16,500 in years 5 and 6 (based on a value of 8.8 times rental yield).
Long term
- Robust income stream.
- Yields in excess of 20% per annum.
- Capital value forecasts of £24,420 in 7 - 12 years and £32,340 in 13 - 18 years.
What next?
For detailed information on this unmissable investment please contact us by filling out the form below or calling us +44 (0)203 287 8727. We can send you:
- A Comprehensive Investor Report.
- Availability, Price List, Floor Plans.
- Details on the Guaranteed Rental.
- Further information on Guaranteed Returns and Long-Term Growth.
Please ask us any questions you have, we are happy to help.