This article is from the Australian Property Journal archive
A PRIVATE Brisbane based operator of storage facilities has paid $6 million for the Storage One facility in Hervey Bay.
The deal negotiated by Highway Frontage Real Estate.
The operator is proposing to re-brand the Hervey Bay centre under a Storage King franchise.
The Hervey Bay property comprises 426 self storage units on a current high occupancy of about 80%.
The current gross monthly rental income is $56,000 or $672,000 on an annualised basis, with the current net earnings before interest, tax and depreciation of the order of $426,000.
Highway Frontage’s director Robert Stanley-Turner said there could be scope to expand the complex on obtaining the necessary permits.
The 4,847 sqm property occupies a site area of 11,810 sqm.
“The business has traded for the past five years and the income at the scheduled price list indicate a potential gross annual income of the order of approximately $900,000 with all storage units fully occupied.
“The potential net earnings before interest, tax and depreciation should rise to the region of $654,000 net on an annual basis,” he concluded.
Australian Property Journal
