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
Since our last update, the company received enquiries from several parties seeking to purchase the Northwich site along with two other sites owned by other Managed Storage companies within our range of Managed Storage Funds. All three sites were purchased by the same buyer (a pension fund).
As the sale of the sites progressed, it became apparent that the larger purpose built sites were commanding a higher price per square foot when sold. The proceeds generated from the sale of the Northwich site will therefore be used by the company to fund the development of a larger facility than originally intended at its second site.
In our last update, we reported that the purchase of a plot of land in Merseyside from a major supermarket has been agreed, pending Board approval from the vendor. The vendor was attempting to sell two side by side plots and this had delayed completing the purchase due to the sale of the second plot falling through.
Whilst there has been some progress, the process has become protracted and therefore the company has identified an alternative site in West Yorkshire. This alternative site is ready to exchange, although some final negotiation is required around the sale contract. The company intends to buy its second site from whichever vendor agrees to the exchange of contracts first.
In our view, the successful sale of the three trading units 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 sites generate high demand from potential buyers once they are fully operational.
Storage (Midlands) Ltd
Building work is all but completed at the company’s Lichfield site, with the facility due to open to the public in October. The company have been busy marketing the site’s services, with a view to hitting the ground running and early demand indicators are positive.
We previously reported that the company had made an offer to purchase a site in Yorkshire. Unfortunately this did not progress and therefore the company has identified an alternative site in Greater Manchester. Heads of Terms have been agreed, subject to pre-application planning. If this does not progress quickly, as a contingency position, the company has the option of taking over whichever site is not chosen as the second site for Storage (North) Ltd.
Please see www.surestore.co.uk for further information.