Write up by Justin - **********3 Jul 2017 22:40
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Energiser will invest up to £0.6m to launch the platform and open the first facility. The objective is to grow a network of more than 20 facilities in the next three to five years.
Performing some back of the envelope maths, if Energiser do manage to open 20 micro self storage units, with an average rental space of 15,000 square feet, at average occupancy level of 75% and rates at around £30 peer square foot. This is the figures you get:
15,000 square feet x 75% occupancy = 11,250 square feet.
11,250 x 20 storage units = 225,000 square feet of occupied space.
225,000 = £30 per square foot rental = £6,750,000 revenue per annum.
At 50% EDITDA margin = £3,375,000.
If you put this on a price earning ratio of 10 = £33,750,000.
From where Engergiser is valued today, £2.32m, if they achieve the minimum of 20 micro self storge units, you could reasonably argue that, this could be a 10 bagger investment.