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Managed Storage EIS Fund

Managed Storage EIS Fund

Fundraise of £10 million completed in March 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 (WM) Ltd

Since our last update, the company received enquiries from several parties seeking to purchase the Cannock 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 Cannock site will therefore be used by the company to fund the development of a larger purpose built facility at its second site in Burton. Construction has already commenced and is due to complete by mid-2020.

Storage (NW) Ltd

Since our last update, the company received enquiries from several parties seeking to purchase the Bolton 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 Bolton site will therefore be used by the company to fund the development of a larger purpose built facility, than originally intended, at its second site in Wigan. The plans submitted for the Wigan site were altered to accommodate this, alongside some changes requested by and agreed with the planning office. We anticipate that formal planning permission should be granted within the next month, with demolition of the existing building commencing shortly thereafter.

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.

 

Please see www.surestore.co.uk for further information.