Your Questions Answered
With housing in short supply, a more transient population and more and more of us finding it difficult to organise and find space for our own personal possessions, Store First self storage offers the opportunity to rent a unit of space (a Storepod), chosen from various sizes, in a secure location, where the tenant is the only person to own the key.
Access into the storage unit can be made at any time, and the self storage facilities offer excellent access 7 days a week. The facilities are secure and friendly and sell other useful items such as boxes, tape and bubble wrap.
The practice of storing goods in a unit of space rented from the owner for the purpose, which allows you to have sole access, is not a 1960s' U.S. originated concept; it is a practice, which has existed around the world for centuries, if not millenniums - the Chinese were known to store their personal belongings in clay pots as long as 6000 years ago.
The practice of renting car garages for general storage has existed in the U.K. since the 1940s and 1950s when the building of rows of garages near housing developments became popular.
What the U.S. industry has done since the 1960s is take the basic concept and develop it, improve it and market it. Thirty years later we have a highly refined quality, flexible self-storage product that is universally acceptable as a valuable utility concept by both consumers and businesses.
Whenever the concept of self storage is introduced to a new market place, in whatever country or region, it has proved to be embraced by the market and replicated. Markets as far afield as South Africa, Brazil, Venezuela and Japan have shown similar development patterns to the early stages of the larger markets of the US, UK & Australia.
In fact Europe's growth trend is showing similar patterns to that of the U.S. in the 70s with growth potential in the short term (5-10 years) in the UK being 7 times current supply.
Storepods range in price from £3,750 for a 25 Sq/Ft Pod, up to to £22,500 for 150 Sq/ Ft. The most common sizes are 75 Sq/Ft which cost £11,250 and 100 Sq/Ft which cost £15,000. We believe Storepods are the most cost effective property investment with the highest yields on the market today. Multiple Storepods can be purchased using one Land Registry title deed, this saves on completion costs on larger property investment portfolios.
Storepods are VAT exempt, therefore there is no VAT to pay on completion.
Storepod rental starts at £17 per Sq/Ft per annum (+ VAT). The 6 year tenancy/lease in place on your Storepod has fixed upwards only rental reviews and break clauses (for both parties) every 2 years. This produces an 8% yield on your investment within the first two years, this then is predicted to rise to over 10% return in years 3&4 and then surpass 12% return in years 5&6.
Yes, as with all commercial property purchases you will receive the 'Title Deed' registered in your name at Land Registry from your solicitor after completion.
Storepods are sold as a 250 year long leasehold property. (Banks consider anything over 100 years just the same as owning a freehold).
All Store First self storage centres have excellent security alarm systems and the latest CCTV. Your Storepod can be accessed 7 days a week. All Store First centres have office accommodation available and include meeting rooms and break out areas to use free of charge. Your Storepod has a high security steel entrance door with concrete secure ceilings. All Store First centres have free parking for all clients and a manned reception area during working hours. Boxes and packaging materials can also be purchased from all centres.
Each Store First Self Storage facility has an estimated 500 Storepods, all of our centres are located in well populated areas and can be seen from the main road or motorway by potential customers. Most customers will rent multiple pods as their requirement for space grows.
Our in-house commercial agent Store First Management Ltd will prepare a licence agreement for tenants to sign and therefore no solicitors are (legally) required; this makes the process simple, fast & straightforward, although you are welcome to use your own legal advisors if you should choose to do so.
Rental reviews take place every 2 years.
A 15% management charge will be deducted from the rental income received along with the service charge for the property. The annual ground rental charge is also payable - full details of all these charges and the rental returns are outlined on our current price list. All percentage returns are quoted after management and service charges have already been deducted, please refer to the price list within this brochure.
Yes, you can re-sell your Storepod at any time and selling your Storepod couldn't be simpler. Store First Ltd can market your Storepod upon your request. We believe that because Storepods are so competitively priced when new, they will make a very attractive sale proposition in the future. We also expect that many tenants will wish to purchase the Storepod they are using. For example, other self storage PLCs usually achieve rent of between £20.00 - £25.00 per square foot. Our Storepods are costed at a rent of only £17.00 per square foot; once higher rents are achieved the capital value of the Storepod will increase.
In year 5, investors have the option to enter the guaranteed buy-back scheme. In this scheme, Store First Management Ltd will guarantee to buy the Storepod back off the investor for the original price paid within the next 5 years. This is a unique offer in the market place and we are happy to be able to offer this exit route to our investors.
Most investors are driven to keep the property investment they have purchased and carry on receiving the rental yield produced for years to come, this means only a very limited number of Storepods per centre will ever come onto the resale market, this creates a high sale value and demand for the future.
Local businesses will also be very interested in purchasing your Storepod as its always better to own a property long term than to rent one, and archiving for most businesses is a very long term and expanding process.
All Storepods are purchased as a private commercial property investment, investors a free to sell, let or manage their own Storepod(s) at any time using any agent they choose.