"As a freehold going concern, the business offers an excellent opportunity to purchase a proven, low risk business generating continuous cash flow with strong returns. Sustained growth over the past three years and with 68 per cent occupancy over the past 12 months, there is still further potential to maximise tenancies and rental growth in the future."
Bradley says EastBay Secure Storage's site backs on to SH30, the main arterial route from Rotorua and Tauranga to Whakatane providing signage opportunities for promotion of the business and is close to The Hub bulk retail centre.
The 106 units are spread over three storage buildings and the 1322sq m facility offers eight different unit sizes ranging from lockers to large single garage size. "This enables the facility to be particularly flexible for customer requirements," he says.
Occupying a 2113sq m fully fenced site, the complex also includes an office facility with amenities. Protected by a high tech security system, the complex has electronic entry and exit gates that operate on a swipe tag system which also regulates the alarm system for each individual unit.
"Security lighting for the complex is programmed for sensors to operate from dusk until dawn which ensures the premises are never in darkness, and the property is further monitored by a professional security company," says Bradley.
Customers rent units with access via a swipe tag during the hours of 6am to 10pm. They store and control their own goods as well as being liable for their own customer contents insurance.
"This means there is no 'bailee' relationship between the storer and storage facility, so the storage facility has no liability in respect of the storer's items," Bradley says. "As long as the customer maintains monthly payments in advance, they have unrestricted access to their storage unit. However, if in arrears, this access can be denied until paid and, in extreme cases, the contents may be sold to recover unpaid revenue."
Bradley says private households are currently the biggest users of the facility's storage options but commercial tenants are increasingly taking advantage of the service, using it as a form of warehouse for products storage.
"The business requires minimal management and can be run on a part-time basis, generally by one person. Ideally this opportunity may suit a couple whereby one can run the facility and the other have outside employment or alternatively, it may appeal to an investor looking to run the business with a contract manager," says Bradley."One of the major benefits of the lockup business is that, unlike conventional commercial or industrial investments where rentals can only be reassessed every two to three years, rental rates are continually able to be reviewed according to supply and demand."
Storage auction specs
On offer: Secure storage complex
Where: 17 Gateway West, Whakatane
Agents: Bayleys Tauranga office
Sales Method: By auction
When: 1pm, Wednesday, December 5
