Fundraise of over £6.6 million completed in March 2018
Following a successful fundraise of £6.6 million, the investee companies have been in the acquisition and establishment phase for two larger managed storage sites.
Storage (Pennines) Ltd
As previously advised, the Company purchased a site in Old Trafford, Manchester. Planning permission was issued in draft by the planning officer for a 40,000 sq. ft. facility, however subsequent revisions delayed ratification and resulted in a request to present to the planning committee due to an objection being raised by a local Councillor. The planning committee chose to decline the proposal as submitted, against the planning departments recommendation.
Specialist legal advice was obtained and the original decision was successfully overturned on appeal, with only slight amendments. The scheme has been increased to the optimum size of 45,000 sq. ft. and costings are under review.
Work commenced in earnest on the site in the first week of September. The build period should be c. 30 weeks and we therefore anticipate trading will commence in H2 2021.
Storage (Cheshire) Ltd
The company opened its 42,000 sq. ft. facility in Bury in September 2019. Since the launch, it has traded through the uncertainty caused by Brexit, the General Election and COVID-19, the latter being exacerbated by “local lockdowns”. Despite these challenges the facility has performed strongly and is ahead of budget.
As at the end of July occupancy was 12,125 sq. ft. which is ahead of budget by 3,225 sq. ft. Demand is such that 10 “drive up” units have been constructed in the car park.
As demand increases, it presents challenges around the amount of additional capital expenditure that is required to fund the “fit out” needed to meet this demand. Cash is therefore being tightly managed. All that said, Management remain very cognisant of the current economic uncertainties and are managing the facility accordingly.
Please see www.surestore.co.uk for further information.