Safestore Holdings & UK Self Storage
Former Operations Director at Safestore Holdings
inpractise.com/articles/safestore-holdings-and-uk-self-storage
Safestore Holdings PLC
Why is this company interesting?
Safestore Holdings (SAFE) is the leading self storage business that operates 130 in the UK, 27 in Paris and 3 in Spain and competes with companies such as Big Yellow (BYG) and Lok’nStore (LOK). The UK has 0.7 square feet of self storage per capita compared to nearly 10 square foot in the US and only 0.2 throughout Europe. There are over 2,500 stores in the UK including ~500 which are cheaper, container stores.
Over the last 7 years, the average rate per square foot has consistently grown 2% per year and the occupancy is up from ~60% to 80% today. SAFE freehold properties earn a 6-7% exit cap rate relative to the 4% average cap rate in London.
SAFE has been a 10-bagger in the last 10 years and has over 60 stores in the pipeline to fuel future growth across Europe.
Safestore Holdings & UK Self Storage(September 23, 2021)
Dave Davies
Former Operations Director at Safestore Holdings
Dave is an experienced self storage executive and was a member of Safestore’s management buy out nearly 20 years ago. He started a career in retail, managing stores for Wickes, a home improvement retail chain, and Pet City, a UK-based pet retail company, before joining Safestore in 2000. Dave was instrumental in buying, operating, and growing the store base across the UK and opening stores in Paris. He currently consults container storage companies in the UK.
In Practise Notes
- US vs UK self storage density
- Cost of the container self storage assets and how it's competing with traditional self storage facilities
- Container self storage start up costs and revenuer per sqft per month
- Why the growth in container facilities doesn't impact traditional self storage returns
- Average self storage cap rate in London and how large players drive higher exit yields by increasing revenue per sqft and occupancy
- UK self storage occupancy trends
- Resiliency of self storage margins
- Self storage opportunity in Europe
Interview Transcript
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