Rotorua self-storage facility has the goods as secure investment
The opportunity to own and run a successful self-storage facility in central Rotorua is available, providing a low-maintenance, straightforward investment in a popular sector.
The large property, located at 8,10 and 12 Railway Rd and 151 Lake Rd, just off State Highway 5 in central Rotorua, is being marketed by John Holmes and John Bedford of CBRE.
Offered as a freehold going concern (land, buildings and business), the property is for sale by expressions of interest closing at 4pm on August 12.
Offering a significant 7797sq m landholding with two street frontages, the property is home to Lake Storage, a well-established self-storage business which has been operating at the site since 1993, says Holmes.
“Lake Storage has a consistently high occupancy rate in its 417 storage units, with only seven currently vacant. Its excellent location close to the town centre means it is a convenient option for locals requiring storage, resulting in a stable, long-term customer base.”
A well-maintained, large-scale facility which offers units of various sizes arranged in separate blocks, Lake Storage offers spaces ranging from wardrobe-sized 3.4cu m units up to large garages of 102cu m.
Occupiers’ belongings are protected by a range of security measures including an electric fence, alarm system and after-hours security patrol. Video surveillance and an electronic swipe card entry system which allows selective entry to individual blocks provides a further level of security. The site is managed by one fulltime employee.
The popularity of self-storage properties as investment holdings has increased rapidly over recent years, resulting in storage assets now being considered a sub-sector of the commercial investment market in their own right, says Bedford.
“Storage property investment is no longer solely the domain of smaller-scale individual investors. The sector is now attracting institutions and bigger offshore investors, with key Australia-based examples including the $1.2 billion Abacus self-storage portfolio, as well as the ASX-listed National Storage REIT, which both own storage assets in New Zealand.”