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
We have previously 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 Northwich site are therefore be used by the company to help fund the development of its second site, a 45,000 sq. ft. facility in East Manchester, Ashton Under Lyne.
Contracts have been Exchanged on the site, with Completion subject to planning permission. As expected, the wider effects of COVID-19 have delayed this process and we are currently awaiting confirmation as to when the scheme will go before planning, hopefully no later than October 2020.
Early indications have been positive and assuming formal planning is forthcoming, we would expect building work should commence in early 2021, with the site operational by Q4 2021.
Storage (Midlands) Ltd
The company’s 50,000 sq. ft. Lichfield facility opened to the public in October 2019. Since the launch it has traded through the uncertainty caused by Brexit, the General Election and COVID-19. Despite these challenges the facility has performed strongly and is ahead of budget.
As at the end of July occupancy was 10,660 sq. ft. which is ahead of budget by 3,585 sq. ft. In view of the increased demand a further 10 “drive up” units are to be constructed in the car park.
In terms of a second site, progress has been slow, exacerbated by both the Vendors and wider effects of COVID-19. That said progress has been made with the purchase of a plot of land adjoining a major supermarket on Merseyside.
Terms are agreed with the legal documents edging towards Exchange, with formal Completion being subject to Planning being approved. With regards to the latter, all the drawings etc. have been completed and are ready to be submitted as soon as Exchange occurs.
Please see www.surestore.co.uk for further information.