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Want to invest in property? Think inside the box! First genuine UK self-storage investment opportunity launched at Hampton Court
October 1, 2012Article by Ray Withers
Self-storage as a concept began in the US in the 1960s with an increasingly transient population taking advantage of dedicated units to store their belongings whilst working away from home. Over the past 50 years its popularity has grown so rapidly in fact that today 1 in 10 use one of the country’s 50,000 facilities.
Heralded as the best performing real estate investment in the US over the past decade according to the Bloomberg Riskless Return Ranking, America currently uses 7.5 sq ft of self-storage space per person compared to only 0.5 sq ft in the UK and even less in Europe but the market is growing – and rapidly!
According to the Self Storage Association UK (SSA UK) Annual Survey 2012 in association with Drivers Jonas Deloitte, there are an estimated 815 self-storage facilities in the UK equating to 29.6 million sq ft of storage space.
Well documented as an industry that has avoided the tough economic climate and seen real growth in hard times (an 8% increase in the number of UK stores in the last year alone), the estimated total annual turnover for the UK self-storage industry in 2011 was £355 million.
As Ray Withers, Chief Executive of award-winning property investment agency, Property Frontiers which is exclusively marketing the first genuine UK self-storage investment opportunity, Personal Storage, Hampton Court, comments,
“Indeed the recession and the need to downsize for those moving home or office has been a benefit to the storage industry. Approximately 60% of self-storage use is related to the housing market but commercial demand is also high especially from start-ups, e-Bay businesses and archiving. Business customers are in fact highly sought after as statistically they stay twice as long in units as domestic users.”
The demand for storage space is especially high in and around the Capital with only 8.1 million sq ft of rentable self-storage space currently available in London for a population of 8.3 million people equating to 0.98 sq ft per person.
High land and commercial property prices had resulted in a lack of new stores opening in London over the past 5 years, in fact only 28% of the total amount of self-storage in UK is in the Capital however established self-storage company, Personal Storage, has secured a prime site in the affluent area of Hampton Court for its latest store.
Located approximately 9 miles south west of London, this latest addition to the Personal Storage portfolio is perfectly situated to capitalize on the demand for additional storage from the 150,000 strong population located within 15 minutes’ drive including some 23,000 university students not to mention the thousands of businesses nearby.
With over 15,200 net sq ft of secure self-storage space available with a variety of unit sizes up to 90+ sq ft, ample space to store the contents of an average 2 or 3 bedroom house, Personal Storage Hampton Court offers plenty of opportunity for investment. With an investment of as little as £14,878 inclusive of VAT, investors can purchase a 999 leasehold title from the building owners and developers as well as a 15 year full, repairing and insuring commercial lease with Personal Storage who will manage the 45 sq ft unit and handle all operations. Returns equivalent to 8% Net in the first 2 years rising to over 10% are assured with an optional buy back from year 5 providing a credible and defined exit strategy makes Personal Storage Hampton Court a genuine property investment in today’s uncertain market.
For more information on how to think inside the box and invest in Personal Storage Hampton Court contact Property Frontiers today for your free interactive Investment Guide on +44 1865 202 700 or visit www.propertyfrontiers.com.