Whangaparaoa storage with track record

Storage businesses are for sale at 9 David Sidwell Place (left) and 18 Karepiro Drive. Photo / Supplied

Two Whangaparaoa storage businesses along with their freehold sites and buildings are being sold as a single going concern business on behalf of the owners Whangaparaoa Storage Limited and Guaranteed Investments Limited.

The storage businesses are being marketed via expressions of interest with an asking price of $3.95 million by Graeme Perigo and Barry Masefield of Barfoot & Thompson Commercial, Whangaparaoa.

"Guaranteed Investments Limited built Self Storage World 9-21 David Sidwell Place in 2003," says Perigo. "Combining with two other partners, Greg Goudie, the owner of Guaranteed Investments, bought Whangaparaoa Storage at 18 Karepiro Drive in 2003 to have the ability to offer the market a cheaper alternative, to gain from economies of scale and to totally dominate the Whangaparaoa storage business.

"The owners have now decided to divest both businesses to pursue other business interests providing someone with the opportunity to purchase a well established business with a proven track record and with the potential to expand earnings in the near future."

The asking price of $3.95 million plus GST if any is made up of land valued at $1,555,200, buildings $1,139,405, goodwill $1,240,395, chattels $15,000 and stock estimated at $1000.

The business comprises a total of 97 storage units in Karepiro Drive and 109 storage units in David Sidwell Place, and an additional 39 outdoor spaces on an adjoining title with potential for future development.

Perigo says both businesses have experienced strong growth and steady trading, due to their central location, high standard of presentation and consistent management.

Whangaparaoa Self Storage World in David Sidwell Place was constructed as a purpose-built self storage facility incorporating the latest security and computerised management systems.

"The facility changed the storage business in the area with its office outside the facility, generous drives, container parking and flat access," Perigo says.

"The buildings were designed specifically for storage use with internal subdivision of the buildings utilising standard components with double partitions and walls to allow for flexibility and potential alteration if reconfiguration of the units is required. The units are let without power or services in keeping with storage use."

Perigo says the site has potential for further development with an adjoining vacant property being purchased and then developed as a yard facility for vehicle storage.

"The yard has the majority of services in place ready for an expansion build and has been contoured to suit. There are a total of 39 leasable spaces on the site and currently 19 spaces are leased to 0508 Temp Fence until July 31, 2012."

Also on the site are three medium-sized industrial units. Unit A has been leased to the same tenant on a month to month basis for the last seven years but there is no formal lease in place.

Unit B was occupied for five years by the owner but is now vacant and has now been listed for lease for $867 per month plus GST.

Unit C is leased to the current owner for his NZ Plank Hire and 0508 Temp Fence businesses.

"This unit will be vacated on settlement, giving flexibility to the new owner to lease or use," Perigo says.

"The units incorporate the management office for the storage facility and could be used separately from unit C if required."

Masefield says the Karepiro Drive storage business in Stanmore Bay was also purpose built around 1992 with additions in 1997.

"The facility was offered to the current owners of Self Storage World in 2003 and was developed to complement their newer facility with a different pricing to cover various parts of the market," Masefield says.

"The combined revenues also created a business of sufficient size to support an infrastructure that would allow for the business to be fully managed."

There is an office facility on site at Karepiro Drive but all administration and support is undertaken from the David Sidwell premises.

"Both properties have been designed and contoured so that if the stormwater drains are blocked excess water is channelled away from the storage units," Masefield says.

The two properties are both zoned mixed use which enables a range of business activities.