Storage shed property sale opens the door for development opportunities.
The land, buildings and business housing a large Central North Island self-storage operation – with the potential to double its capacity and range of services - have been placed on the market for sale.
Taupo Storage Park in the Taupo suburb of Wairakei is a 63-unit self-storage business which has been operating in the town for 10 years - storing everything from people’s domestic furniture, fishing dinghies, and used car parts, through to fancy dress costume wardrobes and personal collections of ‘big boys’ toys’ unable to be stored in a standard suburban garage.
The business sits on 13,227 square metres of industrially-zoned freehold land at 153 Karetoto Road alongside an industrial mechanical workshop and automotive car wrecking storage yard
The storage facility space is leased to individual shed tenants on a month-to-month basis. Meanwhile, the bare land and mechanical workshop premises leased to spare parts automotive dismantler Eurospares is also on a month-to-month lease. Combined, the two leases generate a rental income of $104,247 + GST.
The land, buildings and established Taupo Storage Park business are now being marketed for sale as one parcel by tender through Bayleys Taupo, with tenders closing on September 20.
Bayleys Taupo salesperson Gary Harwood said that with the business’s storage sheds occupying only some 30 percent of the available land space within the property, there was room for significant further development of the storage business on the bare land portion of the property.
“The storage shed component on the land consists of 1548 square metres of buildings sitting on 3,046 square metres of land zoned for light industrial use. The adjacent bare land – which is gently sloping in its topography - is currently occupied by a car wrecking business on a month-to-month basis,” he said.
“There is the potential for any new owner/operator of the business to look at expanding the range of storage spaces – potentially adding more of the bigger 30 square metre units suitable for short-term commercial and industrial storage use.
“Additionally, the bare land area could us utilized for boat, caravan and motor-home storage to add another dimension to the breadth of existing service offerings.
“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 all the existing storage rental agreements in place. Storage rental is charged on a calendar month basis in advance. The 63 secure units on site range in size from 12 - 30 square metres.
“That payment structure ensures a strong cash-flow from the business,” Mr Harwood said.
The two rows of terrace-configured storage units are constructed from concrete slab flooring, timber framing, tin 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 partially tar-sealed, while Taupo Storage Park’s entrance gates are accessed by an electronic key card system.
Mr Harwood said Taupo Storage Park’s sales revenues had been consistently growing over the past five years – both through the incremental increase of monthly rental fees as new tenants took up space, and by the high overall occupancy levels.
The property sits within Taupo’s industrial precinct – some seven kilometres from the town’s central business district and situated within easy access to state highways 1 and 5.
Neighbouring properties around the Karetoto Road area are tenanted by such light industry operations as geothermal energy engineering company MB Century, research institute GNS Science, along with regional tourism businesses including Huka Prawn Park, Hukafalls Jet, the Volcanic Activity Centre, Huka Falls Souvenirs, Huka Honey Hive, Rock ‘n Ropes, Water Sports Park and Shooters Golf Range.
“Subject to negotiations with Eurospares, intensification of the car storage lay-out could see more vehicles stored in a smaller footprint, which would allow for expansion of the storage business amenities to be conducted in a staged manner to underpin existing revenues,” Mr Harwood said.