Fundraise of £10 million completed in November 2017
Following a successful fundraise of £10 million, the investee companies have been in the acquisition and establishment phase for the four managed storage sites.
Storage (North) Ltd
In our September 2019 update, we advised that the company had sold its Northwich site to an institutional buyer. As that sale progressed, it became apparent that larger purpose built facilities were commanding a higher price per square foot when sold. The proceeds generated from the sale of the Cannock site are therefore be used by the company to fund the development of its second site, a 45,000 sq. ft. facility in East Manchester.
In our September 2019 update, we reported that the company was seeking to purchase a further site, either a plot of land in Merseyside or an alternative site in West Yorkshire. Due to delays caused by other parties involved, the decision has been taken to move the choice between these sites to Storage (Midlands) Ltd (see below), leaving Storage (North) Ltd free to take forward the site previously being considered by its sister company.
Exchange has been agreed on a site in East Manchester, subject to planning permission. The pre-application meeting has taken place and planners advice received. Assuming planning is forthcoming, building work should commence in the summer of 2020, completing in early 2021.
Storage (Midlands) Ltd
The company’s 50,000 sq. ft. Lichfield facility opened to the public in October 2019. Trading is well ahead of plan, with both occupancy and sq. ft. rates being higher than originally forecast
In September 2019, we reported that the company was considering the purchase of a site in East Manchester. As mentioned above, the decision has been taken to swap this opportunity for the choice of two sites previously being considered by Storage (North) Ltd. These include the purchase of a plot of land in Merseyside from a major supermarket and an alternative site in West Yorkshire. As at February 2020, the Merseyside option is looking more likely to progress but is dependent upon Board approval from the supermarket involved.
In our view, the successful sale of the trading unit at Northwich, as well as the sale of a further facilities from our first Managed Storage EIS Fund, vindicates the site choices made by the Surestore team and whilst it can take longer than originally anticipated to locate the optimum sites and obtain planning consent, the facilities generate high demand from potential buyers once they are fully operational.
Please see www.surestore.co.uk for further information.