Whakatane storage with strong cash flow
RentAShed in Whakatane, is on the market.
One of the Bay of Plenty’s longest running self-storage businesses has been placed on the market for sale.
RentAShed in Whakatane is a 74-unit self-storage business which has been operating in the town for 20 years, storing items exceeding the capacity of domestic garages. They include domestic furniture, fishing dinghies, car parts, fancy-dress costume wardrobes and “big boys toys” of every kind.
The freehold land, buildings, and RentAShed business are being marketed for sale at auction on October 26 by Bayleys Tauranga.
The property features in Bayleys’ latest Total Property portfolio, and Bayleys Tauranga salespeople Brendon Bradley and Mathew Gibbard say the RentAShed business consists of 1548sq m of buildings sitting on 3046sq m of land zoned for light industrial use.
Bradley says RentAShed’s location in 34 Valley Rd — one of the town’s main arterial routes — allows the premises to service both Whakatane residents and Ohope locals just over the hill. The 74 secure units on site range in size from 6sq m to 28sq m — big enough to store a small recreational motor boat.
“A regular and proactive maintenance schedule has ensured the general condition of the RentAShed complex and the units within it have been kept to a high standard. This in turn has allowed for premium rental rates to be gleaned from the business, as customers have confidence that their goods and items are being stored safely and stored well,” Bradley says. “One of the major benefits of a multi-unit self-storage business is that unlike conventional commercial or industrial properties where leasing rate increases can only be assessed every two to three years, the rental rates at self-storage units can be continually reviewed either on an annual basis or as the individual tenants come and go.”
The business is being sold with existing storage rental agreements in place. Storage rental is charged on a calendar month basis in advance. RentAShed’s entrance gates are open from 7am-6pm every day, including weekends. Entrance to units outside those hours incurs a $50 call-out fee. Storage unit holders are responsible for their own possessions insurance.
RentAShed units to blend in with the surrounding environment.
“That payment structure ensures a strong cash-flow from the business,” Bradley says.
The seven rows of terrace-configured storage units are constructed from concrete slab flooring, timber framing, gib-board internal lining, Coloursteel external wall and roof cladding, with individual roller door access from the front of each unit.
Some storage units have their own light and power point inside. The yard is fully tar-sealed and has a small bathroom facility for customers’ communal use.
Concrete bollards and timber guard rails wrap around the end corners of the seven storage blocks to minimise accidental vehicular damage and protect the units’ cladding. The fully barbed-wire fenced property is monitored by a movement detection alarm system, with six fire hose reels strategically positioned beside the seven rows of storage units.
Gibbard says RentAShed Whakatane‘s sales revenues grew by 15.6 per cent in the 2015/16 financial year — delivering an 18.5 per cent profit increase for its owners compared to the same period in 2014/15.
“In the current financial year, the self-storage units are recording an occupancy rate of between 95-100 per cent — delivering a forecast further 7 per cent year-on-year sales revenue growth for the 2016/17 financial year,” Gibbard says.
“The nature of the business allows for RentAShed to be managed remotely through a website and mobile ‘phone. For example, the current owners live in Tauranga. The yard is open and closed daily by a Whakatane-based security monitoring company, which also monitors the remote alarm-sensor system.
“Predominantly, private households are the biggest users of RentAShed’s facilities. Other tenants utilising RentAShed units include a number of sole-operator tradespeople who use the complex as a supply base which is on the CBD fringe of Whakatane township. The later clientele tends to have longer rental arrangements.”
Neighbouring properties contain businesses with a similar light industrial focus, allowing the RentAShed units to blend in with the surrounding environment. The yard is accessed by a short sole-use right of way.