13 Jun 2017 07:00
13 June 2017
Energiser Investments plc
('Energiser' or the 'Company')
Investment in Micro Self Storage
Highlights
· Energiser has committed to an initial investment of £0.6m with an industry leading self-storage entrepreneur to launch a micro self storage operator ("Micro Self Store")
· The funding will be used to immediately launch Micro Self Store and open a micro self-storage facility in the first half of the next financial year
· The objective of Micro Self Store is to grow a network of more than 20 facilities in the next three to five years
· The new company will be technology led, substantially digitising operations and user interfaces to maximise customer experience and management efficiencies
Energiser is pleased to announce its first investment of £0.6m in Micro Self Store with Paul Fahey, who has successfully grown self-storage companies internationally.
Self-storage is a fast growing industry in the UK whereby customers rent private self-storage units and lockers within a larger warehouse, for storage of personal and business items. Traditionally, self-storage facilities operate in the 40,000 sq ft upwards range and are positioned on the edge of large towns and cities, providing a self-storage service to a large catchment area. Micro Self Store will focus on micro facilities of 10,000 to 35,000 sq ft within dense urban centres such as London and on the edge of smaller towns where there is low or no competition from large operators. With the dramatic rise in the cost of residential space, the directors of Energiser believe there is strong demand for convenient, readily accessible and affordable flexible storage solutions for people who want to "self-store next door".
Energiser will invest up to £0.6m to launch the platform and open the first facility. It is the first party to invest in Micro Self Store and will initially own 100% of the shares of the company. Micro Self Store is in discussion with a number of parties regarding co-investment growth capital. Accordingly, as further investment is made or management earn-in milestones achieved, Energiser's holding will be diluted. Energiser has the option to invest additional capital into Micro Self Store as it expands its network in the UK - the objective is to grow a network of more than 20 facilities in the next three to five years. The initial investment will be drawn down over the next six months.
Energiser is providing capital, access to industry contacts and will introduce potential sites to Micro Self Store through its real estate partner network. It is independent from the operations of the business, which will be put together by sector specialist Paul Fahey.
Micro Self Store will be technology driven, based on methods and processes perfected in the mature USA self-storage market. This will include digitised access to self-storage units and lockers, remote facility monitoring, and a focus on targeted digital marketing to drive sales. Digitisation will maximise customer experience and minimise the costs of operating a network of micro facilities.
Paul Fahey, brings extensive market and digital operating knowledge to the new business. Paul has founded and grown a number of successful self-storage businesses over the last 15 years. He sold Big Storage to a large listed UK operator in 2015 and continues to oversee Flexi Space (based in the north of England) and Easybox (seven facilities in Italy). He is a past President of the Federation of European Self Storage Associations (FEDESSA), is past Chairman and a current Director of the UK Self Storage Association, and is Chairman of Self Storage Performance Management International, a specialist funding and operations adviser to self-storage operators.
Energiser is focused on making investments into the real estate sector, in both property operating platforms and property assets. An investment in Micro Self Store delivers on both of these objectives.
Chief Executive, Dominic White, commented: "we've been looking at the traditional self-storage sector for some time, and have recognised the growth potential in this new sub-sector of the traditional market: micro self-storage. We're excited to be one of the first investors in this market. With the benefit of Paul's experience, the new platform's management will implement international self-storage best-practice operations and highly digitised processes from the start."
Paul Fahey commented: "we expect this to be a fast growing segment within the wider self-storage category. With Energiser as the platform's cornerstone investor and the new management team's sector knowledge and operating experience, we expect to see the business grow rapidly".
Energiser looks forwards to updating the market in the coming months as its investment progresses.
For further information, please visit http://www.energiserinvestments.co.uk/ or contact:
Energiser Investments plc +44 1494 762 450
Dominic White, Chief Executive
Nishith Malde, Director
Cairn Financial Advisers LLP +44 20 7213 0880
Jo Turner / Sandy Jamieson
Energiser Investments Plc
Energiser Investments Plc is an Investment Company whose strategy is to invest in quoted and unquoted companies to achieve capital growth. The Group's focus is on the property sector where it invests in property equity and loan transactions, and, property operating businesses. Within its property operating business strategy, Energiser is currently considering investments in the self-storage, serviced apartments and secured property lending sectors.