DEVELOPMENT PORTFOLIO

Transcription

1 DEVELOPMENT PORTFOLIO

2 THE FASTEST GROWING self storage company in the UK OVER 40 MILLION of rental returns paid OVER 254 MILLION worth of storage space under management 100% BUILD COMPLETE no off-plan development risk LARGEST PRIVATELY OWNED self storage company in the UK OVER 51 MILLION of capital growth created OVER 1.5 MILLION Sq/Ft of self storage developed 0% BANK LOANS or borrowing of any kind

3 3 The UK s Self Storage Companies have seen the Highest Growth and Highest Yielding Returns within the commercial property sector over the last decade. Store First is proud to offer the first affordable self storage commercial property investment to be released into the UK. You will receive guaranteed returns from a 6 year lease already in place upon completion, making this a high yielding, hassle-free investment which has been specifically designed to meet the needs of today s astute investor. Store First Ltd 2015

4 Typical Store Pods 5 144, sqft 35 sqft 50 sqft 75 sqft 100 sqft Price: 3,750 Price: 5,250 Price: 7,500 Price: 11,250 Price: 15, sqft Price: 22,500 Welcome to a new self storage concept, with guaranteed income and what has now become an investment revolution... the Storepod. Rental P/W: 8.17 Rental P/W: Rental P/W: Rental P/W: Rental P/W: Rental P/W: A Storepod is an individual, high security self storage commercial unit, set within a Store First self storage centre. Investment Highlights New purpose built self storage centres in prime locations Storepods are a solid commercial property investment which carry a single title deed registered in your name at the UK land registry. This is the easiest way to allow both individuals and businesses to manage belongings, equipment, furniture, stock and any other storable items in a secure and safe storage facility with 24 - hour access 7- days a week. Storepods come in a variety of sizes and have all the facilities and support provided by Store First management teams at very competitive rental rates. Store First is producing new self storage facilities across the UK. We use the same successful blueprint as many other large PLC self storage companies - but with a much improved business model, facilities and an aggressive profit driven marketing strategy. throughout the UK. High specification Storepods available to purchase with full UK land registry approval. State of the art facilities. Investors receive a discount of 25% as documented by RICS commercial property valuations. 6 year lease in place upon completion, which gives excellent, guaranteed returns. Proven resale strategy with excellent projected profits on initial investment. Developer Buy Back Option on the fifth anniversary of property ownership. SIPP (Self Invested Personal Pension) approved commercial property investment. No VAT on purchase price or rental income. The highest yielding sector of any commercial property investment within the last decade. Store First Ltd 2015

5 7 What service does a Store First Centre offer its customers? Store First has brought very high fit-out specification to its storage facilities and continues to improve upon it. Borrowing from its experiences in office developments (Business First Ltd), Store First offers its storage users services and benefits, which one would never normally have expected. These include: office facilities, catering facilities, conference rooms and free wi-fi as well as the facilities you would also expect such as manned reception areas, security facilities and supplies. The current generation of storage buildings will even be equipped with gyms and VIP lounges. For people on the move who have sold their home and the moving dates haven t quite matched up or are de cluttering to show their home in the best possible light to potential buyers. Customers can store by the week, month, year or longer and we only ask for seven days notice when they want to leave. We have Storepods from 25 sq/ft to 225 sq/ft or more, and we give customers the flexibility to move without penalty - they only pay for the space they need. They have access to their belongings 24 hours, 7 days a week at Store First including the generous reception opening hours of 8am until 6pm Monday to Saturday and 10am until 4pm Sundays. Our corridors are wide, well lit and there are large undercover loading bays. We provide pallet trucks and trolleys to move customers equipment and belongings we also have forklift trucks with trained personnel on site. We offer an extensive range of packing materials including boxes, tape and bubble wrap that we can send out to customers homes. We also have our own fleet of Store First vans offering a free collection service. For total peace of mind, all our customers may insure their goods through Store First s Open Cover Policy. Our policy is specifically designed offering the best protection available, so customers can be sure that their possessions are protected. Ample customer car parking is free at all of our Store First centres and our staff onsite are friendly and always happy to help. For companies who need more archiving or have too much stock to hold or maybe just need an office clear out. Either way, Store First can help to make a move go as smoothly as possible with one of our self storage facilities. As soon as they sign up, customers can use their space immediately. Not only do we have 24 hour live digital CCTV, but every Store First centre has its own monitored alarm system. We also have coded electronic gates, perimeter security fencing, smoke detectors and fire alarms to protect customers belongings. Store First Ltd 2015

6 9 The Self Storage Market What the experts say In the USA, and to a certain degree the UK, experience illustrates the potential of the self storage market. The USA self storage market has been established for far longer than any of the European markets including the UK. The industry has grown steadily for more than 30 years and is now worth an estimated $15bn per annum. The US self storage association has around 30,000 members centres registered with over 1.5 billion sq/ft of lettable space. It is estimated that there are a further 6,000 8,000 centres not registered with the association, and despite the maturity of the market, the US market continues to grow by 10-15% per annum (based on net lettable space). Similarly the UK market is estimated to have grown at a rate of 10-15% per annum over the last decade and the increasing interest in the sector is a reflection of the belief that growth will continue to accelerate. There are approximately 800 self storage facilities operational in the UK. As impressive as that may sound, it represents about the same number of self storage facilities as exist in San Diego County, California. Compare that to the total population of San Diego which is 2.75 million, the UK with a population of 60 million the under development of UK self storage is evident. Additionally, the UK self storage market is very concentrated: indeed, out of 300 facilities registered with the UK self storage Association, nearly 75% are located in the South East of England. Greater London itself accounts for 200 centres and operators are still developing within the M25. Now that enough outlets have been opened to prove that the concept works in the UK the industry has entered a new phase of rapid growth, and all the main players are working hard to take advantage of the returns available. It is likely that the second period of growth, which is marked by the ability to open outlets that have a strong competitive position in their location, will last for 5-10 years. Thereafter, it is expected that the industry will enter the third, mature phase, with an outlet in most towns, and with competition between outlets located in the same catchment area. Demographic projections and factual self storage information provide us with a clear image of magnitude self storage is likely to reach, even making a conservative assumption that the UK market will never exceed 25% of the present USA self storage supply. There is currently 7.4sqft of self storage Space for every man woman and child in the USA and only 0.21 currently in the UK. That equates to just 8700 people in America for every self storage facility, compared to one storage facility for every 147,500 people in the UK. The penetration of the self storage in the USA is 23 times that in the UK on a space per head of population basis, and 17 times on a number of facilities per head of population basis. On this evidence the UK could support 6,800 storage centres. Continuing with our penetration rate of 25% of that of the US the current UK population could support 1700 self storage facilities or around 4.5 times the current number. Information source - The UK Self Storage Association. There are varying reasons why the self storage market is predicted to grow a leading property management company in London gives the following reasons: Social factors including a high divorce rate and an aging population resulting in demand for single occupancy housing units, which are usually smaller than family homes. Rapid rise of the small business community demanding flexible storage accommodation. Fulfillment needs driven by the rise in e-commerce. Increasing population mobility. Increased public awareness of self storage as a service. There is currently low awareness as low as 10%. Significant pressure on housing stock in the South of England, as a result of central government initiatives, town planning and fiscal policy, encouraging housing development on Brownfield sites. A shift predominantly in cities and towns, towards high-density housing developments with consequential pressure on storage space. An increasingly affluent and acquisitive society with the result that self storage will be seen as a necessity. Demand for self storage in the UK remains robust. The market is considerably less mature than in the USA and remains highly fragmented. There have been a number of high profile entrants recently. However, the rate of growth in the industry will more than accommodate the increase in capacity. Indeed it can be argued that it is actually good for the long-term health of the market. Greater public awareness of flexible self storage will stimulate further demand. Recently there has been considerable media interest in the financial activity in the self storage market. A number of corporate reorganisations and mergers have been announced where significant property investors have identified the attractiveness of the self storage industry. The benefits of this are growing customer awareness of the product and a growing willingness amongst institutional landlords to consider self storage tenants. Set against this is the greater competition for new stores. After some years the industry in the USA is now in the third phase. Returns to investors remain healthy, and competition does not necessarily result in a reduction in profitability. Indeed, there is a saying in the industry that one salesman in a town has a hard time selling his product, but two or three do very nicely. Most of the senior players in the UK market look forward to the time when self storage has become so common that most of the population understands the concept. Store First Ltd 2015

7 Shuttleworth Mead Business Park SIZE: 500,000 Sq/Ft SALES VALUE ESTIMATED AT: OVER 100,000,000 Mead Way Padiham Lancashire BB12 7NG

8 Blackpool Airport Business Park SIZE: 85,000 Sq/Ft SALES VALUE ESTIMATED AT: OVER 10,000,000 Amy Johnson Way Blackpool, Lancashire FY4 2RP

9 Store First: Burnley SIZE: 84,896 Sq/Ft SALES VALUE: 12,734,400 CURRENT MARKET VALUE: 15,918,000 Enterprise Way Empire Business Park Liverpool Road Burnley, BB12 6LT

10 Store First: Blackburn SIZE: 131,182 Sq/Ft SALES VALUE: 19,977,300 CURRENT MARKET VALUE: 24,971,625 Centurion Business Pk Davyfield Road Blackburn BB1 2QY

11 Store First: Barnsley SIZE: 14,475 Sq/Ft SALES VALUE: 21,687,250 CURRENT MARKET VALUE: 27,089,100 Ashroyd Business Pk Barnsley S74 9SB

12 Store First: Cheshire Oaks SIZE: 113,700 Sq/Ft SALES VALUE: 17,055,000 CURRENT MARKET VALUE: 21,318,750 Stanney Mill Road Ellesmere Port CH2 4HX

13 Store First: Rochdale SIZE: 63,970 Sq/Ft SALES VALUE: 9,595,500 CURRENT MARKET VALUE: 11,994,375 Crown Business Park Cowm Top Lane Rochdale OL11 2PU

14 Store First: Liverpool SIZE: 64,775 Sq/Ft SALES VALUE: 9,716,250 CURRENT MARKET VALUE: 12,145,312 Liverpool Estuary Estuary Banks Liverpool L24 8QR

15 Store First: Wakefield SIZE: 42,005 Sq/Ft SALES VALUE: 6,300,750 CURRENT MARKET VALUE: 7,875,937 Freeway Park Freeway Drive Wakefield WF10 5QH

16 Store First: Leeds SIZE: 102,810 Sq/Ft SALES VALUE: 15,421,500 CURRENT MARKET VALUE: 19,276,875 2 Stourton Haigh Pontefract Road Hunslet, Leeds LS10 1AX

17 Store First: Glasgow SIZE: 172,275 Sq/Ft SALES VALUE: 25,841,250 CURRENT MARKET VALUE: 32,310,562 Linwood Point Paisley PA1 2FB

18 Store First: Preston SIZE: 67,810 Sq/Ft SALES VALUE: 10,171,500 CURRENT MARKET VALUE: 12,714,375 Millennium City Park Millennium Road Preston PR2 5BL Under Construction 2014

19 Store First: Derby SIZE: 30,890 Sq/Ft SALES VALUE: 4,633,500 CURRENT MARKET VALUE: 5,791,875 Riverside Road, Pride Park, Derby, DE24 8HY

20 Store First: Manchester SIZE: 94,545 Sq/Ft SALES VALUE: 14,181,750 CURRENT MARKET VALUE: 17,727,188 Ashburton Road Trafford Park Manchester M32 0ZF

21 Store First: Nottingham SIZE: 30,890 Sq/Ft SALES VALUE: 4,633,500 CURRENT MARKET VALUE: 5,791,875 1 Lowermoor Road Observatory Way Kirkby-in-Ashfield Nottingham NG17 7RD

22 Floor Plan Key Store Room Prices 25 sq ft - 3, sq ft - 5, sq ft - 7, sq ft - 11, sq ft - 15, sq ft - 22,500 Centre Facilities Hotpods Breakout Area Loading Bays Training Rooms VIP Lounge Reception Board Rooms Gym Lifts

23 43 Storepod Prices & Rental Income... Price List - Years 1&2 - Based upon an 8% Return Property Type Size Sq/Ft Sale Price Rental Income Ground Rental Management Fee Service Charge Net Rental Return (Store First Ltd) (per Storepod) (per Storepod) ( 17 per Sq/Ft) (per annum) (15% per annum) ( 1.95 per Sq/Ft) (8% for Years 1&2) Storepod 25 3, Storepod 50 7, Storepod 75 11,250 1, Storepod ,000 1, , Storepod ,750 2, , Storepod ,500 2, , Storepod ,250 2, , Storepod ,000 3, , Store First Ltd General Sizes Sales Price Gross Income Cost once let Cost once let Cost once let Net Income Storepods have the benefit of an established 6 year lease via Store First Management Ltd with fixed and upward facing rental reviews and bi-annual break clauses. Figures shown are for illustration purposes. All agreements are subject to contract. Store First Ltd 2015

24 45 Price List - Years 3&4 - Based upon a 10% Return Price List - Years 5&6 - Based upon a 12% Return Property Type Size Sq/Ft Sale Price Rental Income Ground Rental Management Fee Service Charge Net Rental Return (Store First Ltd) (per Storepod) (per Storepod) ( 21 per Sq/Ft) (per annum) (15% per annum) ( 1.95 per Sq/Ft) (10% for Years 3&4) Storepod 25 3, Storepod 50 7,500 1, Storepod 75 11,250 1, , Storepod ,000 2, , Storepod ,750 2, , Storepod ,500 3, , Storepod ,250 3, , Storepod ,000 4, , Store First Ltd General Sizes Sales Price Gross Income Cost once let Cost once let Cost once let Net Income Property Type Size Sq/Ft Sale Price Rental Income Ground Rental Management Fee Service Charge Net Rental Return (Store First Ltd) (per Storepod) (per Storepod) ( 25 per Sq/Ft) (per annum) (15% per annum) ( 1.95 per Sq/Ft) (12% for Years 5&6) Storepod 25 3, Storepod 50 7,500 1, Storepod 75 11,250 1, , Storepod ,000 2, , Storepod ,750 3, , Storepod ,500 3, , Storepod ,250 4, , Storepod ,000 5, , Store First Ltd General Sizes Sales Price Gross Income Cost once let Cost once let Cost once let Net Income Storepods have the benefit of an established 6 year lease via Store First Management Ltd with fixed and upward facing rental reviews and bi-annual break clauses. Figures shown are for illustration purposes. All agreements are subject to contract. Storepods have the benefit of an established 6 year lease via Store First Management Ltd with fixed and upward facing rental reviews and bi-annual break clauses. Figures shown are for illustration purposes. All agreements are subject to contract. Store First Ltd 2015

25 47 Your Questions Answered... Your Questions Continued... What is Self Storage? With housing in short supply, a more transient population and more and more of us finding it difficult to organise and find space for our own personal possessions, Store First self storage offers the opportunity to rent a unit of space a Storepod, chosen from various sizes, in a safe secure location, where the tenant is the only person to own the key. Access into the Storepod can be made at any time, and the self storage facilities offer excellent service and commitment 24 hours 7 days a week! The centres are secure and friendly with excellent business facilities. Each centre has a shop that sells items such as boxes, tape and bubble wrap. What is the history of Self Storage? The practice of storing goods in a unit of space rented from the owner for the purpose, which allows you to have sole access, is not a 1960s U.S. originated concept; it is a practice, which has existed around the world for centuries, if not millenniums the Chinese were known to store their personal belongings in clay pots as long as 6000 years ago. The practice of renting car garages for general storage has existed in the U.K. since the 1940s and 1950s when the building of rows of garages near housing developments became popular. What the U.S. industry has done since the 1960s is take the basic concept and develop it, improve it and market it. Thirty years later we have a highly refined quality, flexible self storage product that is universally acceptable as a valuable utility concept by both consumers and businesses. Whenever the concept of self storage is introduced to a new market place, in whatever country or region, it has proved to be embraced by the market and replicated. Markets as far afield as South Africa, Brazil, Venezuela and Japan have shown similar development patterns to the early stages of the larger markets of the US, UK & Australia. In fact Europe s growth trend is showing similar patterns to that of the U.S. in the 70s with growth potential in the short term (5-10 years) in the UK being 7 times current supply. What is the capital cost? Storepods range in price from 3,750 for a 25 Sq/Ft Room, up to 33,750 for a 225 Sq/Ft Room. The most common sizes are 75 Sq/Ft which cost 11,250 and 100 Sq/ Ft which cost 15,000. We believe Storepods are the most cost effective property investment with the highest yields on the market today. Multiple Storepods can be purchased using one Land Registry title deed; this saves on completion costs on larger property investment portfolios. Is there VAT to pay on completion? Storepods are VAT exempt; therefore there is no VAT to pay on completion of your property. There is also no VAT charged on rental income of your Storepod. What rental income can I expect? Storepod rental starts at 17 per Sq/Ft per annum. The 6-year tenancy/lease in place on your Storepod has fixed upwards only rental reviews and break clauses (for both parties) every 2 years. This produces an 8% yield on your investment within the first two years, this then is predicted to rise to over 10% return in years 3&4 and then surpass 12% return in years 5&6. Is there a single title deed? Yes, as with all UK property purchases you will receive the Title Deed registered in your name at Land Registry from your solicitor after completion. Is this a leasehold or freehold property? Storepods are sold as a 999 year long leasehold property. (Banks consider anything over 100 years just the same as owning a freehold). What else do I get with my Storepod? All Store First self storage centres have excellent security alarm systems and the latest CCTV. Your Storepod can be accessed 7 days a week. All Store First centres have office accommodation available and include meeting rooms, free Wi Fi and break out areas to use free of charge. Your Storepod has a high security steel entrance door with concrete secure ceilings. All Store First centres have free parking for all clients and a manned reception area during working hours. Boxes and packaging materials can also be purchased from all centres. How many Storepods are in a full centre? Each Store First self storage facility has an estimated 500 Storepods, all of our centres are located in well-populated areas and can be seen from the main road or motorway by potential customers. Most customers will rent multiple Storepods as their requirement for space grows. Do I need to use a solicitor to prepare the leases? Our in-house commercial agent Store First Management Ltd will prepare a licence agreement for tenants to sign and therefore no solicitors are (legally) required; this makes the process simple, fast & straightforward, although you are welcome to use your own legal advisors or commercial agents if you should choose to do so. When can I expect rental reviews to take place? Rental reviews take place every 2 years. What costs will I incur if my Storepod is vacant? You will incur no management or service charge fees while your Storepod is empty. The only fee you will incur is a small annual ground rental payment. What costs will I incur when my Storepod is let? A 15% management charge will be deducted from the rental income received along with the service charge for the property. The annual ground rental charge is also payable full details of all these charges and the rental returns are outlined on our current price list. All percentage returns are quoted after management and service charges have already been deducted, please refer to the price list within this brochure. Can businesses purchase my Storepod? Local businesses will also be very interested in purchasing your Storepod(s) as it s always better to own a property long term than to rent one, and archiving for most businesses is a very long term and expanding process. Lots of businesses are now located and operate from Store First centres and we have seen a very keen appetite to purchase from these customers. Can I easily resell my Storepod? Yes, you can re-sell your Storepod at any time and selling your property couldn t be simpler. Store First can market your Storepod upon your request. We believe that because your property is so competitively priced when new, they will make a very attractive sale proposition in the future. We also expect that many tenants will wish to purchase the Storepod they are using. For example, other self storage PLC companies usually achieve rent of between VAT per square foot per annum. Our Storepods are costed at a rent of only per square foot per annum with no VAT charge applicable; once higher rents are achieved the capital value of the Storepod will increase. What s the exit route? In year 5, investors have the option to enter the Store First buy-back scheme. In this scheme, Store First will buy the Storepod back from the investor for the original price paid within the next 5 years. This is a unique offer in the market place and we are happy to be able to offer this exit route to our investors. Most investors are driven to keep the property investment they have purchased and carry on receiving the rental yield produced for years to come, this means only a very limited number of Storepods per centre will ever come onto the resale market, this creates a high sale value and demand for the future. Can I sell at any time? All Storepods are purchased as a private commercial property investment, investors are free to sell, let or manage their own Storepod(s) at any time using any agent they choose. All sales subject to contract, terms and conditions apply, figures for illustration purposes only. Where do Storepods fit within my investment portfolio? A Storepod is a long term asset backed income generating commercial property, which has excellent projected capital growth. Storepods underpin and help diversify any investor s future investment portfolio. Store First Ltd 2015

26 49 Testimonials... What our customers say. Store First Liverpool It s not very often these days that you see really outstanding service so I feel I must compliment you and your team on the professional way in which you assisted me with the move into your storage facility. From the outset everything has been dealt with in a courteous and professional way, good price with great service makes for a winning combination every time - thank you. Andy Davies - Rental Consumer Fancy Gal Lingerie (UK) Ltd Store First Blackburn Friendly staff, nice clean environment, nice big units, and after starting off with a small unit we re now looking into getting bigger units. Different from what I have seen before, it s very ideal for us. I have access to my goods anytime of the day, could be morning, could be evening and night, and the fact that when you come in that everything is in a secure area and so for me it s therefore safe to come on my own. Shiza - Business Consumer Beez Furniture Store First Wakefield With Store First we have the space to store our bikes and equipment plus the use of the car park to do the training, so it s very flexible. We initially wanted somewhere to store our bikes, and maybe find somewhere else to do all the training, but at Store First it s all under one roof so it s absolutely brilliant. I think we have one of the best sites in the UK, when you look at the other places that do the training. It has made a big difference to my business. I haven t seem anywhere else within the storage industry that s got these sort of facilities. Robert Ashworth Business Consumer RA Motorcycle Training Store First Barnsley Store First is flexible, it has flexible demand, and it meets the needs for us For a small business like myself starting off it just meets the needs and if you have any problems at all, the guys at the front desk are always there to meet your needs and always there ready to help. I would recommend people to pop down and have a look around and see how clean everything looks, it s just fantastic. Kieran Fletcher Business Consumer Funda Store First Burnley When Store First opened it was on our door step with our office across the road, so it s quite important to us that we ve got everything in a good location, near the motorway, good access,good service, we don t need to be here when materials are being delivered, it s all there handled for us. It s great, it s something that everyone should have, and should really consider moving into Store First because it s so good, flexible and easy. Sam Whitehead Business Consumer Blue Bell Developments Ltd Store First Ltd 2015

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28 53 Store First s mission is to create market leading self storage facilities which through our commitment to service, standards and value become the envy of the industry, creating opportunities for our customers, investors and staff to fulfil their potential. Contact us T. +44 (0) F. +44 (0) Investor info@s1.co.uk Rentals info@storefirst.com Investor Rentals Store First Limited Group First House Mead Way, Padiham Lancashire, BB12 7NG United Kingdom Store First Ltd 2015 Company No

29 Disclaimer Store First are not authorised to give investment/tax advice and you should seek independent financial and legal advice on all information included in this document prior to making any investment decision. All forecasts are based on historical performance and are purely indicative. The value of your property may rise or fall. No guarantees as to future performance in respect of income or capital growth are given either expressly or by implication and nothing expressed or implied should be taken as a forecast of future performance. This is not an offer to participate in a collective investment scheme as defined in the Financial Services and Markets Act 2000 (section 235) and as such buyers have no access to statutory or regulatory protections including the Financial Ombudsman Service and the Financial Services Compensation Scheme. Store First is not regulated by the FSA and is not authorised to offer advice to the general public concerning any regulated or unregulated investment. Although every care has been taken to make sure that the information in this brochure is accurate, Store First Ltd cannot accept any responsibility for mistakes or omissions. You should take your own professional advice before taking or refraining from any action based on the contents of this brochure which are only intended as a general outline to the matters referred to in it. All content is under copyright and remains the property of Store First Ltd unless otherwise agreed. Storepod is a copyrighted product of Store First Ltd.

30 Group Residential Business co.uk Store Park