Buyers seek to unlock potential of storage business

The freehold land, buildings and business sustaining a popular regional self-storage complex have been put on the market for sale.

Marketed as the Eastern Bay of Plenty’s premium commercial storage facility, Whakatane Secure Storage Centre has successfully traded for nearly 20 years catering to diverse domestic and commercial needs.

The modern secure complex at 51-53 Te Tahi Street, Whakatane, is strategically positioned about 3.5 kilometres south of the town’s central business district and 100 metres from the Whakatane/Taneatua highway.

Its location and versatile storage offerings have helped to ensure consistently high occupancy levels. The business generated net income of $239,553 plus outgoings and GST in the year to March.

Now on the market, the Whakatane enterprise is expected to attract strong buyer interest from owner-operators and passive investors.

“This is a business that requires minimal management and can generally be run part-time by one person,” said Brendon Bradley of Bayleys Real Estate.

“As such, it will be a pretty enticing proposition for a local or an investor from further afield keen to buy into the dream of living and doing business backed by the Bay’s superb lifestyle and climate.

“Storage sites generally are known to generate strong income. Those that have changed hands in the past year or so nationally have typically sold at yields of between 4.7 and 6.9 per cent,” Bradley said.

Whakatane Secure Storage Centre is being marketed for sale as a freehold going concern by the family sales team of Brendon, Lynn and Ryan Bradley of Bayleys Tauranga. Sale will be by auction on Wednesday 15 September, unless it is sold earlier.

The purpose-built storage complex comprises five buildings constructed in the early 2000s with a total gross building area of approximately 2137 sq m on some 4228 sq m of freehold land. The site has about 70m of frontage to Te Tahi Street, from which it has drive-on access.

Brendon Bradley said the buildings contained some 110 units in a wide range of sizes.

“The buildings feature high-quality construction with a combination of concrete and concrete block foundations, predominantly timber framing and Coloursteel roofing. Most external walls are clad with Coloursteel, with concrete tilt-slab to three sides of one building,” said Bradley.

“All units have fire-rated wall linings, pest control is carried out regularly and the complex is approved for insurance purposes.

“The site is fully fenced with security lighting, an automated entry/exit gate and wide concrete-paved drives and yard areas for ease of access. All units are individually alarmed as part of an electronic security system which is monitored 24/7 by a national security firm. Users have around-the-clock access to their unit via a personal security fob.”

A rear grassed area at 51 Te Tahi Street currently provides external storage as required. This would lend itself to the development of further units to accommodate future growth, Bradley said.

Lynn Bradley said units across the five buildings ranged in size from 10 to 175 cu m with roller-door heights between 2.2 and 3.18m.

“The biggest of these are suitable for storing commercial equipment or large personal ‘toys’ such as boats and campervans.

“With international travel in the ‘too-hard’ basket for many in the Covid era, a lot of Kiwis are investing in these types of assets to support domestic recreation and travel, which is only adding to demand for this kind of storage,” she said.

Rental rates for units at the Whakatane complex currently range from $140 to $490 per month, including GST, with potential upside subject to market review.

The business offers long-term and short-term rentals, with rent payable monthly in advance or weekly by automatic payment, with a minimum rental cost of one month’s rent.

“The convenient location and multiple tenancies across a wide range of unit sizes, configurations and rental terms ensures consistently strong demand from a variety of individual and commercial users, strong revenues and a solid spread of risks,” she said.

More detailed information on assets and business performance is available to potential buyers subject to signing a confidentiality agreement.

Ryan Bradley said the site formed part of Whakatane District Council’s Light Industrial zone, which is dominated by manufacturing and processing activities and commercial services. Some small-scale or ancillary retail activities are permitted for the convenience of workers.

Neighbouring occupiers include VTNZ, Carter’s Tyres, electricity company Horizon Networks and the Whakatane Transfer and Recycling Centre.

He said the opportunity for buyers of Whakatane Secure Storage Centre was underpinned by growing recognition of the town’s attractiveness as a place to do business.

“With a population of about 15,000, Whakatane is the biggest town and main service and administrative hub for the Eastern Bay of Plenty. It has excellent air, rail and road links. It’s within 100km of Rotorua and Tauranga and in easy reach of about half of New Zealand’s population.

“The town lies in the heart of a buoyant and diverse regional economy, with strengths in multiple industries such as tourism, dairy, horticulture and forestry,” he said.

-Article supplied by Bayleys