Contact us on 020 8744 9444

Invest in self-storage

Home > Invest in self-storage > Why invest in self-storage? > Realising your gains

Realising your gains

Storage King, Tingalpa, AustraliaWe have covered the on-going value to a self-storage operator in the sections Return on investment and Growing your investment. So when do you decide to sell a part or your entire share in the business?

Exit strategy

A large majority of investors come into self-storage with their ‘exit’ in mind. A successful exit strategy could go like this: over a medium term, invest in a series of self-storage facilities, built and run professionally. Build a brand and stabilise the rental space in a reasonable period. Once a critical mass of stabilised facilities has been achieved, you exit via any one of several accepted and proven routes:

  • sell to a large strategic buyer;
  • sell to a private equity or real estate fund;
  • sell (and maybe leaseback) to a REIT;
  • take the entity public via IPO and/or invite other investors.

Nearly every major player in the market has grown through one of these routes and as a result there are thousands of beneficiary founders in their wake.

Self-storage units with lazurite blue swing doors and a recessed door lockA savvy owner/operator will make the large majority of their decisions with an exit in mind. This means not cutting corners in the construction and set-up of the facility; and using recognised self-storage building components and access control and security systems to avoid headaches that plague some operators during the due diligence period of a sale.

Long-term growth

There are some long-standing founders in the industry who continue to grow their business year-on-year. They are appreciative of the long life of our high-quality self-storage building components and access control and security systems.

Discover more about investing in self-storage