Self Storage

Background to self storage

The modern storage industry began in the United States in the late 1960s as an alternative to the traditional home removal and shipping services. By offering a low rental cost per square foot and around the clock access to secure facilities, self storage and managed storage quickly became popular with both residential and business customers.

The UK storage industry is relatively small when compared to that of the US, but has shown strong growth in recent years. There are now over 1,000 self storage facilities in the UK representing 37.6 million square feet of storage space. Total turnover for the industry reached over £440 million in 2015 with 71% of operators intending to increase prices*. With occupancy levels growing there is strong indication that demand is growing faster than supply of new facilities.

 

Self Storage Facilities

Elm Trading’s self storage division has interests in a portfolio of three mature self storage facilities, located in Ashford (Kent), Swindon and Worcestershire, which together provide over 102,000 square feet of storage space.

The income of a storage facility is derived from the storage management fees charged to retail and business customers, together with additional income from the sale of storage supplies (such as packing boxes), insurance and the provision of additional services, for example home removals and van hire.

Professional storage companies, including Lok’nStore and Storage King, are appointed to provide operational and marketing services for each site.

 

Why Self Storage is an attractive trading opportunity

  • Storage facilities comprise real land and property, which provides tangible asset backing
  • A mature storage facility can generate stable and predictable income returns and can benefit from capital appreciation
  • Increasing demand for storage space from both private individuals and small businesses
  • Established market for self storage assets should liquidity be required