This article is from the Australian Property Journal archive
A well located freehold and business which trades as the “Storage King Cheltenham” is being offered for sale by an Expressions of Interest process.
Selling agent Highway Frontage Real Estate is selling the property.
Located at 371-5 Warrigal Road, Cheltenham south-east of Melbourne CBD, the property is virtually opposite the Kingston Centre and is just south of South Road.
The property has a frontage of over 51 metres to Warrigal Road with a total land area of 6,420 sqm and has a second frontage to a rear access laneway.
Currently the site has a self storage complex with a building area of 3,962 sqm which is 80% occupied and has traded from the site for the past eighteen years.
Highway Frontage Real Estate’s Robert Stanley-Turner said that the property has significant further development potential upon the adjoining property and has a permit to construct another 91 self storage units on site.
“The self storage complex is currently earning a gross annual income of around $480,000 before the basic business overheads of staffing and operating costs.
“The vendor in recent years has added 90 storage units to the site and together with the completion of an additional 91 units (already approved), potentially the complex could increase its annual gross income to around $750,000 per annum,” he added.
Stanley-Turner said that the self storage industry is still relatively in its infancy in Australia.
“In the USA for instance, there are over 44,000 self storage properties which is five times the density per head of population to Australia and the industry there is still growing at around 10% per annum.
“With the demand for self storage space from businesses and private users, investors including superannuation and property funds, are recognising the investment potential the sector offers through a combination of capital appreciation of the buildings and reliable cash flow generated by the storage space and complementary services.”
Stanley-Turner said he anticipates interest in the Storage King Cheltenham freehold and business to attract offers in the region of $4 million.
By Kathryn O’Meara
