The Titan Storage (Sidcup) EIS is purchasing and developing a freehold site in Sidcup to provide local businesses and residential clients with a convenient storage solution.

Freehold Asset Backed: The Titan Storage (Sidcup) EIS Company (the ‘Company’) was seeking up to £5 million to purchase and develop a 45,000 sq.ft. freehold site in Sidcup, in a busy retail and office park adjacent to a Tesco superstore. Sidcup is an affluent and densely populated suburb of London.

Ducalian, on behalf of the EIS company, have already exchanged and secured the Sidcup site, and, subject to successful planning, will complete on the site in early 2017.

Established Brand: Titan Storage is an established and experienced team with 6 sites already trading under the Titan Storage brand in the UK. The team is now poised to build on their existing expertise to expand the business with the Sidcup acquisition. Working closely with the asset manager Ducalian Capital, a private equity firm specialising in real estate, the funds raised will be used purchase the Sidcup freehold site, fit out the property and provide working capital.

Strategic Partnerships: Ducalian has partnered with major UK property developers on bids for a number of attractive industrial sites with Ducalian and Titan Storage providing the storage piece. Ducalian believe that being part of a larger development will help increase visibility and value for shareholders.

Understand the Market

Market Potential: The storage market in the UK is quite immature compared to the US and Australian markets. In the UK, 0.59 sq.ft. per person of storage space is currently available versus the US with 7.5 and Australia with 1.8. With a growing population and a shrinking house size, this creates an excellent market potential in the UK (see Self Storage Association UK 2016).

Diversified Market: Deloitte Real Estate’s annual survey highlighted the shift in the customer base. Historically residential clients have been the main source of revenue for storage businesses; however, business customers now account for 40% of revenue and have an average stay of 61 weeks. This could be due to the growth of the online business sector which has seen a significant increase in the number of internet-based business. These companies are in need of flexible and accessible storage solutions and are a growing customer for self storage businesses.

Demand Generators: Social factors coupled with increased public awareness are contributing to increased demand for storage in the UK. With household sizes falling, an increasing elderly population, high divorce rates, etc., this leads to increased demand for storage. Furthermore, large advertising campaigns from the leading storage operators are helping to ensure target markets are aware of the options available.