The land, buildings, and going concern business operating as a well-patronised self-storage complex in Coromandel’s most prosperous seaside town have been placed on the market for sale.
Trading as Container It, the secure self-storage location in Whitianga comprises a total of 450-square metres of self-storage space sitting on approximately 5,084 square metres of industrial-zoned freehold land.
Unlike conventional self-storage facilities where customers rent individual terraced style lock-up garages, Container It predominantly comprises three and six-metre-long shipping containers – with a handful stacked on top of each other – in addition to 450-square metres of traditional warehousing space used for storage.
Established in 2016, the secure Container It self-storage hub is configured in three rows of structures consisting of 140 shipping containers which rent for different rates depending on size. Spacious vehicle access running between each of the rows allows container transportation trucks with cranes to deliver and remove containers sitting on top of other containers.
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Tenant access to the Container It self-storage units is via secured gates – with the main centre gate being electronically-controlled. When fully tenanted, the Container It business generates annual revenue of $104,489 plus GST.
Now the property at 17 Moewai Road in Whitianga, along with the going concern Container It self-storage unit business, is up for sale at auction on September 28 through Bayleys Hamilton. Salesperson Josh Smith said the Container It self-storage units were tenanted by a mix of private and commercial clients who all took advantage of the venue’s convenient location on the edge of town, in Whitianga’s industrial precinct away from residential dwellings.
Smith said the Container It business would attract both investors looking for a relatively hands-off opportunity, or for owner-occupiers looking for storage space for their own possessions.
The property is fully enclosed with wire fencing to ensure the security of tenants’ possessions stored within the individual containers. The site is monitored by security cameras on a 24/7 basis. Each unit allows for the storage of household furniture and business paraphernalia, as well as ‘boys’ toys’ such as cars, small boats or dinghies, motorcycles, quadbikes, kayaks, and jet skis.
“The fact that Container It is in an industrial location means tenants can access their units at any time of the day or week without disturbance to neighbours in the immediate vicinity,” he said.
“Off-site storage for New Zealand businesses really came to the fore during the Covid-19 period of 2020, and well into early 2022 when many small businesses grappled to deal with supply chain continuity of product – the most public of which was of course the gib board shortage which saw supply of the building product become intermittent, and forced tradies to stockpile gib as and when they could source it,” Smith said
“Self-storage is also now a fairly standard dynamic amongst one-man band tradies such as electricians and plumbers who operate from their van with a mobile phone, but need somewhere to store supplies which can be easily accessed after hours or on weekends to respond to emergency callouts for example.”
Although the self-storage industry is relatively new in New Zealand, in the United States it is worth more than $38 billion, with one in 11 people paying for extra space to house their possessions. The first self-storage facility in the U.S. was established in Texas in the mid-1960s.
Smith said self-storage has been a constantly growing industry in New Zealand over the past two decades as leisure habits and pursuits increased, or as businesses made the most efficient use of their premises by storing equipment and stock off-site.
A survey by AA Insurance found that five percent of the 1,100 Kiwis they surveyed paid for off-site storage of their goods and possessions.
Commenting on the survey findings, AA Insurance said: “Kiwis use storage facilities for a number of reasons, like keeping items safe between house moves, if they’ve inherited furniture, or simply because they have too much ‘stuff’.”
The AA Insurance survey highlighted that furniture and household items were the most common items kept in storage by Kiwis – as indicated by 67 percent of respondents, followed by sports equipment at 34 percent, and tools and equipment indicated by 30 percent of respondents. The AA Insurance survey also noted that a substantial proportion of storage unit users – some 30 percent – utilised the service for more than three years.
“For storage business owners and operators, that’s certainly a cornerstone block of tenants within the rental book which would give confidence to forecast revenues,” Smith said.
Smith said the property and business at 17 Moewai Road offered not only a substantial stable income but also a strong underlying land value. He said the Container It business could be run either under an owner/operator model or could also sustain employing a contract manager.
“Currently, the business’s owner is utilising part of the warehousing for personal use, and this could be put back into the rental pool to satisfy demand and increase return,” he said.
“The existing positioning of the containers allows for the potential to add additional units – either at ground level or by taking advantage of the stacking format – as there is a portion of underutilised yard space.”
The Moewai Road location sits adjacent to Whitianga’s existing urban limit – having a minimal impact on the closest residential dwellings to the inland location some distance away.
- Article supplied by Bayleys
