PRIVATE development company Acme Property Developments has launched a new investment opportunity for people wanting to spread their risk namely the chance to invest in their own self-store units.
Acme has bought 3,5ha of vacant land with the capacity for 700 storage units of various sizes at the Kya Sand Business Park near North Riding in Johannesburg.
They are busy marketing the Lock Stock Storage Centre and say the biggest demand from investors are for 6m by 3m units. There is also the choice of bigger or smaller units on offer at the development.
Mike Brown, spokesman for the developers, says the Lock Stock Storage Centre was launched last week and that there was a gap in the market for this kind of investment.
Brown says that as far as the storage centre concept is concerned, it is one of the fastest growing sectors in terms of supply.
"It won't be too long before you see institutional investment in selfstorage developments," he says.
Brown says people are downsizing their residential properties and need places to store things.
"Lifestyles have changed. People have caravans, motorcycles as well as trailers. Businesses are also looking for storage space."
The demand for storage space is at such premium that if you wanted to rent a unit, you would find it difficult to find a vacant one in Johannesburg, says Brown.
"I think the same would apply in other major centres. There simply isn't enough storage space. Here is an opportunity for someone to buy something for their own use or as an investment," says Brown.
He says buying an apartment could cost R600000, but the same investor could buy 10 storage units for the same amount of money and spread his risk.
Looking at storage units from an investment point of view, Brown says that in terms of the rentals being achieved on the open market, an investor would achieve a 10% net return on an annual basis. This, he says, is a conservative view .
"Rentals will escalate, demand will continue and supply is short."
The units are busy being built.
Mar 31 2004 08:01:12:000AM Nick Wilson Business Day 1st Edition
Publisher: Business Day
Source: Business Day
