New Purpose built completed self storage centres in prime locations throught the UK
In the last 2 years, Store First Limited has acquired and developed 10 substantial purpose-built Self-Storage Centres, with a further 10 new sites nearing completion. It is Store First’s aim to have 50 operational Self-Storage Centres within the next five years. All of Store First’s sites whether operational or in development have no mortgage liability and the company is debt free.
The Store First product is solid commercial property.
It comes firmly within HMRC’s definition of what is suitable for SIPP (Self-Invested Personal Pension) investment and carries with it the benefit of having its own registrable title at the UK Land Registry. Each Investor will have their own personal title deed registered at the UK Land Registry.
All of Store First’s investors receive a 25% discount off the market value of their Self-Storage Rooms. Current RICS valuations are available
State of the art facilities
Store First has brought very high fit- out specification to its storage facilities and continues to improve upon it. Borrowing from its experiences in office developments (Business First Ltd), Store First offers its storage users perks and benefits which one would never normally have expected.
Spread the risk
Purchasing a number of different size storage rooms gives our investors an excellent way to spread their risk. Although storage rooms have a very low entry level starting at only £3,750, our typical client purchases multiple rooms with their average spend now exceeding £60,000. (NB: Investment levels above £500,000 may attract VAT on rental incomes).
6 year lease & fixed returns
Store First Limited takes a 6 year lease-back of the Storage Rooms upon completion. This guarantees rental income for the first two years at a return rate of 8%. Income rises to projected returns of over 10% in years 3&4 and then to over 12% in years 5&6. Both the Investor and Store First Limited can call for the lease to be ended on the second and fourth anniversaries should they wish to do so, for example re-sale purposes.
Resale Strategy with 25% projected profit
The Investor may ask Store First Limited to sell their Storage Room on their behalf at any time (subject to a 5% resale fee). Store First Limited will market the Storage Room at a minimum 25% above the initial purchase price to potential owner occupiers, business storage users and other investors. Many storage room resales have already taken place giving a minimum 25% gross profit back to the investor.
Developer Buy Back option
The Investor may ask Store First Limited to buy back the storage rooms after five years (subject to conditions). Store First Limited will pay the Investor the same price as the Investor paid initially. This is a safety mechanism designed for extenuating circumstances. For example; death, incapacity, financial difficulty etc.
SIPP Approved Commercial Property Investment
Her Majesty’s Revenue & Customs in the UK states certain types of investment which are suitable for inclusion in self-invested pensions (SIPPs). Immoveable commercial property containing no residential element is suitable for SIPP investment. The Storage Rooms are an immoveable commercial property containing no element of residence. In practice over £68 million worth of storage units have already been acquired by SIPPs within 2012, administrated by several different SIPP providers.
No VAT
Store First’s Investors are not obliged to charge VAT to their tenants (under current UK law) unless their income from the rentals exceeds the threshold (currently £77,000 p.a.), whereas the large national Self-Storage companies must charge VAT. This way the investor is always able to offer his tenants a lower and more attractive rental deal. Store First Self-Storage Rooms are also sold without VAT on the purchase price – saving our investors 20% tax (at the current VAT rate) off the initial investment.
Highest yielding sector of commercial property
The UK’s Self Storage companies have seen the highest growth and highest yielding returns within the commercial property sector over the last decade. Store First is proud to have released the first affordable pension approved Self-Storage property investment. Store First has now completed many Self-Storage Centres across the UK, with over 6,000 Storage Rooms which are now receiving excellent rental returns.
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For more information or to request a brochure, please contact us