DEVELOPMENT PORTFOLIO

(1)

(2)

100% BUILD COMPLETE

no off-plan development risk

OVER 1.5 MILLION Sq/Ft

of self storage developed

LARGEST PRIVATELY OWNED

self storage company in the UK

OVER £40 MILLION

of rental returns paid

OVER £51 MILLION

of capital growth created

OVER £254 MILLION

worth of storage space under management

0% BANK LOANS

or borrowing of any kind

THE FASTEST GROWING

(3)

Store First is proud to offer the first affordable self storage commercial property

investment to be released into the UK.

You will receive guaranteed returns from a 6 year lease already in place upon

completion, making this a high yielding, hassle-free investment which has been

specifically designed to meet the needs of today’s astute investor.

The UK’s Self Storage Companies have seen the

Highest Growth and Highest Yielding Returns within

the commercial property sector over the last decade.

3

(4)

Storepods are a solid commercial

property investment which carry a

single title deed registered in your

name at the UK land registry. This

is the easiest way to allow both

individuals and businesses to

manage belongings, equipment,

furniture, stock and any other

storable items in a secure and

safe storage facility with 24 - hour

access 7- days a week.

Investment Highlights

• New purpose built self storage centres in prime locations

throughout the UK.

• High specification Storepods available to purchase with

full UK land registry approval.

• State of the art facilities.

• Investors receive a discount of 25% as documented by

RICS commercial property valuations.

• 6 year lease in place upon completion, which gives

excellent, guaranteed returns.

• Proven resale strategy with excellent projected profits on

initial investment.

• Developer Buy Back Option on the fifth anniversary of

property ownership.

• SIPP (Self Invested Personal Pension) approved

commercial property investment.

• No VAT on purchase price or rental income.

• The highest yielding sector of any commercial property

investment within the last decade.

Welcome to a new self storage concept, with guaranteed

income and what has now become an investment revolution...

the Storepod.

Storepods come in a variety of

sizes and have all the facilities

and support provided by Store

First management teams at very

competitive rental rates.

Store First is producing new self

storage facilities across the UK.

We use the same successful

blueprint as many other large PLC

self storage companies - but with

a much improved business model,

facilities and an aggressive profit

driven marketing strategy.

A Storepod is an individual, high security self storage

commercial unit, set within a Store First self storage centre.

£144,000

Typical Store Pods

150 sqft

25 sqft

35 sqft

50 sqft

75 sqft

100 sqft

Price: £3,750

Rental P/W: £8.17

Price: £5,250

Rental P/W: £12.00

Price: £7,500

Rental P/W: £17.00

Price: £11,250

Rental P/W: £25.00

Price: £15,000

Rental P/W: £33.00

Price: £22,500

Rental P/W: £49.00

5 Store First Ltd 2015

(5)

What service does a Store First Centre offer its customers?

These include: office facilities, catering

facilities, conference rooms and free wi-fi

as well as the facilities you would also

expect such as manned reception areas,

security facilities and supplies. The current

generation of storage buildings will even be

equipped with gyms and VIP lounges.

• For people on the move who have

sold their home and the moving dates

haven’t quite matched up or are de–

cluttering to show their home in the

best possible light to potential buyers.

• For companies who need more

archiving or have too much stock to

hold or maybe just need an office

clear out.

Either way, Store First can help to make

a move go as smoothly as possible with

one of our self storage facilities. As soon

as they sign up, customers can use their

space immediately.

Customers can store by the week, month,

year or longer and we only ask for seven

days notice when they want to leave.

We have Storepods from 25 sq/ft to 225

sq/ft or more, and we give customers the

flexibility to move without penalty - they

only pay for the space they need. They

have access to their belongings 24 hours,

7 days a week at Store First including the

generous reception opening hours of 8am

until 6pm Monday to Saturday and 10am

until 4pm Sundays.

Not only do we have 24 hour live digital

CCTV, but every Store First centre has

its own monitored alarm system. We also

have coded electronic gates, perimeter

security fencing, smoke detectors and fire

alarms to protect customers’ belongings.

Our corridors are wide, well lit and there are large

undercover loading bays. We provide pallet trucks

and trolleys to move customers’ equipment and

belongings – we also have forklift trucks with

trained personnel on site.

We offer an extensive range of packing materials

including boxes, tape and bubble wrap that we

can send out to customers’ homes. We also have

our own fleet of Store First vans offering a free

collection service.

For total peace of mind, all our customers may

insure their goods through Store First’s Open Cover

Policy. Our policy is specifically designed offering

the best protection available, so customers

can be sure that their possessions are

protected. Ample customer car parking

is free at all of our Store First centres

and our staff onsite are friendly

and always happy to help.

Store First has brought very high fit-out specification to its storage

facilities and continues to improve upon it. Borrowing from its

experiences in office developments (Business First Ltd), Store First

offers its storage users services and benefits, which one would

never normally have expected.

7

(6)

In the USA, and to a certain degree the UK, experience illustrates the potential of the self storage market. The USA self storage market has been established for far longer than any of the European markets including the UK. The industry has grown steadily for more than 30

years and is now worth an estimated $15bn per annum.

The US self storage association has around 30,000 members centres registered with over 1.5 billion sq/ft of lettable space. It is estimated that there are a further 6,000 – 8,000 centres not registered with the association, and despite the maturity of the market, the US market continues to grow by 10-15% per annum (based on net lettable space).

Similarly the UK market is estimated to have grown at a rate of 10-15% per annum over the last decade and the increasing interest in the sector is a reflection of the belief that growth will continue to accelerate. There are approximately 800 self storage facilities operational in the UK. As impressive as that may sound, it represents about the same number of self storage facilities as exist in San Diego County, California. Compare that to the total population of San Diego which is 2.75 million, the UK with a population of 60 million the under development of UK self storage is evident. Additionally, the UK self storage market is very concentrated: indeed, out of 300 facilities registered with the UK self storage Association, nearly 75% are located in the South East of England. Greater London itself accounts for 200 centres and operators are still developing within the M25.

Now that enough outlets have been opened to prove that the concept works in the UK the industry has entered a new phase of rapid growth, and all the main players are working hard to take advantage of the returns available.

It is likely that the second period of growth, which is marked by the ability to open outlets that have a strong competitive position in their location, will last for 5-10 years. Thereafter, it is expected that the industry will enter the third, mature phase, with an outlet in most towns, and with competition between outlets located in the same catchment area.

Demographic projections and factual self storage information provide us with a clear image of magnitude self storage is likely to reach, even making a conservative assumption that the UK market will never exceed 25% of the present USA self storage supply. There is currently 7.4sqft of self storage Space for every man woman and child in the USA and only 0.21 currently in the UK. That equates to just 8700 people in America for every self storage facility, compared to one storage facility for every 147,500 people in the UK. The penetration of the self storage in the USA is 23 times that in the UK on a space per head of population basis, and 17 times on a number of facilities per head of population basis. On this evidence the UK could support 6,800 storage centres. Continuing with our penetration rate of 25% of that of the US the current UK population could support 1700 self storage facilities or around 4.5 times the current number.

There are varying reasons why the self storage market is predicted to grow a leading property management company in London gives the following reasons:

Social factors including a high divorce rate and an aging population resulting in demand for single occupancy housing units, which are usually smaller than family homes. Rapid rise of the small business community demanding flexible storage accommodation.

• Fulfillment needs driven by the rise in e-commerce. • Increasing population mobility.

• Increased public awareness of self storage as a service. • There is currently low awareness as low as 10%.

Significant pressure on housing stock in the South of England, as a result of central government initiatives, town planning and fiscal policy, encouraging housing development on Brownfield sites.

A shift predominantly in cities and towns, towards high-density housing developments with consequential pressure on storage space.

An increasingly affluent and acquisitive society with the result that self storage will be seen as a necessity.

Demand for self storage in the UK remains robust. The market is considerably less mature than in the USA and remains highly fragmented. There have been a number of high profile entrants recently. However, the rate of growth in the industry will more than accommodate the increase in capacity. Indeed it can be argued that it is actually good for the long-term health of the market. Greater public awareness of flexible self storage will stimulate further demand. Recently there has been considerable media interest in the financial activity in the self storage market. A number of corporate reorganisations and mergers have been announced where significant property investors have identified the attractiveness of the self storage industry. The benefits of this are growing customer awareness of the product and a growing willingness amongst institutional landlords to consider self storage tenants. Set against this is the greater competition for new stores.

After some 20-30 years the industry in the USA is now in the third phase. Returns to investors remain healthy, and competition does not necessarily result in a reduction in profitability. Indeed, there is a saying in the industry that “one salesman in a town has a hard time selling

his product, but two or three do very nicely”. Most of the senior players in the UK market look forward to the time when self storage has become so common that most of the population understands the concept.

Information source - The UK Self Storage Association.

The Self Storage Market – What the experts say…

9

(7)

SALES VALUE ESTIMATED AT:

OVER £100,000,000

Mead Way Padiham Lancashire BB12 7NG

Shuttleworth Mead Business Park

SIZE:

(8)

SALES VALUE ESTIMATED AT:

OVER £10,000,000

Amy Johnson Way Blackpool, Lancashire FY4 2RP

01253 599599

£25,841,250

£4,633,500

£5,791,875

1 Lowermoor Road Observatory Way Kirkby-in-Ashfield Nottingham NG17 7RD

(22)

Store Room Prices

25 sq ft - £3,750

35 sq ft - £5,250

50 sq ft - £7,500

75 sq ft - £11,250

100 sq ft - £15,000

150 sq ft - £22,500

Centre Facilities

Hotpods

Breakout Area

Loading Bays

Training Rooms

VIP Lounge

Reception

Board Rooms

Gym

Lifts

(23)

Property Type

Size Sq/Ft

Sale Price

Rental Income

Ground Rental

Management Fee

Service Charge

Net Rental Return

(Store First Ltd) (per Storepod) (per Storepod) (£17 per Sq/Ft) (per annum) (15% per annum) (£1.95 per Sq/Ft) (8% for Years 1&2)

Storepod 25

£3,750

£425 £12.50 £63.75 £48.75

£300.00

Storepod 50

£7,500

£850 £25.00 £127.50 £97.50

£600.00

Storepod 75

£11,250

£1,275 £37.50 £191.25 £146.25

£900.00

Storepod 100

£15,000

£1,700 £50.00 £255.00 £195.00

£1,200.00

Storepod 125

£18,750

£2,125 £62.50 £318.75 £243.75

£1,500.00

Storepod 150

£22,500

£2,550 £75.00 £382.50 £292.50

£1,800.00

Storepod 175

£26,250

£2,975 £87.50 £446.25 £341.25

£2,100.00

Storepod 200

£30,000

£3,400 £100.00 £510.00 £390.00

£2,400.00

Store First Ltd General Sizes

Sales Price

Gross Income

Cost once let

Net Income

Storepods have the benefit of an established 6 year lease via Store First Management Ltd with fixed and upward facing rental reviews and bi-annual break

clauses. Figures shown are for illustration purposes. All agreements are subject to contract.

Price List - Years 1&2 - Based upon an 8% Return

Storepod Prices & Rental Income...

43

(24)

Price List - Years 5&6 - Based upon a 12% Return

Property Type

Size Sq/Ft

Sale Price

Rental Income

Ground Rental

Management Fee

Service Charge

Net Rental Return

Storepod 25

£3,750

£625 £12.50 £93.75 £48.75

£470.00

Storepod 50

£7,500

£1,250 £25.00 £187.50 £97.50

£940.00

Storepod 75

£11,250

£1,875 £37.50 £281.25 £146.25

£1,410.00

Storepod 100

£15,000

£2,500 £50.00 £375.00 £195.00

£1,880.00

Storepod 125

£18,750

£3,125 £62.50 £468.75 £243.75

£2,350.00

Storepod 150

£22,500

£3,750 £75.00 £562.50 £292.50

£2,820.00

Storepod 175

£26,250

£4,375 £87.50 £656.25 £341.25

£3,290.00

Storepod 200

£30,000

£5,000 £100.00 £750.00 £390.00

£3,760.00

Store First Ltd

General Sizes

Sales Price

Gross Income

Cost once let

Net Income

Storepods have the benefit of an established 6 year lease via Store First Management Ltd with fixed and upward facing rental reviews and bi-annual break clauses.

Figures shown are for illustration purposes. All agreements are subject to contract.

Property Type

Size Sq/Ft

Sale Price

Rental Income

Ground Rental

Management Fee

Service Charge

Net Rental Return

Storepod 25

£3,750

£525 £12.50 £78.75 £48.75

£385.00

Storepod 50

£7,500

£1,050 £25.00 £157.50

£97.50

£770.00

Storepod 75

£11,250

£1,575 £37.50

£236.25

£146.25

£1,155.00

Storepod 100

£15,000

£2,100 £50.00

£315.00

£195.00

£1,540.00

Storepod 125

£18,750

£2,625 £62.50

£393.75

£243.75

£1,925.00

Storepod 150

£22,500

£3,150 £75.00

£472.50

£292.50

£2,310.00

Storepod 175

£26,250

£3,675 £87.50

£551.25

£341.25

£2,695.00

Storepod 200

£30,000

£4,200 £100.00 £630.00

£390.00

£3,080.00

Store First Ltd

General Sizes

Sales Price

Gross Income

Cost once let

Net Income

Storepods have the benefit of an established 6 year lease via Store First Management Ltd with fixed and upward facing rental reviews and bi-annual break clauses.

Figures shown are for illustration purposes. All agreements are subject to contract.

Price List - Years 3&4 - Based upon a 10% Return

45

(25)

How many Storepods are in a full centre?

Each Store First self storage facility has an estimated 500 Storepods, all of our centres are located in well-populated areas and can be seen from the main road or motorway by potential customers. Most customers will rent multiple Storepods as their requirement for space grows.

Do I need to use a solicitor to prepare the leases?

Our in-house commercial agent Store First Management Ltd will prepare a licence agreement for tenants to sign and therefore no solicitors are (legally) required; this makes the process simple, fast & straightforward, although you are welcome to use your own legal advisors or commercial agents if you should choose to do so.

When can I expect rental reviews to take place?

Rental reviews take place every 2 years.

What costs will I incur if my Storepod is vacant?

You will incur no management or service charge fees while your Storepod is empty. The only fee you will incur is a small annual ground rental payment.

What costs will I incur when my Storepod is let?

A 15% management charge will be deducted from the rental income received along with the service charge for the property. The annual ground rental charge is also payable – full details of all these charges and the rental returns are outlined on our current price list. All percentage returns are quoted after management and service charges have already been deducted, please refer to the price list within this brochure.

Can businesses purchase my Storepod?

Local businesses will also be very interested in purchasing your Storepod(s) as it’s always better to own a property long term than to rent one, and archiving for most businesses is a very long term and expanding process. Lots of businesses are now located and operate from Store First centres and we have seen a very keen appetite to purchase from these customers.

Can I easily resell my Storepod?

Yes, you can re-sell your Storepod at any time and selling your property couldn’t be simpler. Store First can market your Storepod upon your request. We believe that because your property is so competitively priced when new, they will make a very attractive sale proposition in the future. We also expect that many tenants will wish to purchase the Storepod they are using. For example, other self storage PLC companies usually achieve rent of between £20.00 - £25.00+ VAT per square foot per annum. Our Storepods are costed at a rent of only £17.00 per square foot per annum with no VAT charge applicable; once higher rents are achieved the capital value of the Storepod will increase.

What’s the exit route?

In year 5, investors have the option to enter the Store First buy-back scheme. In this scheme, Store First will buy the Storepod back from the investor for the original price paid within the next 5 years. This is a unique offer in the market place and we are happy to be able to offer this exit route to our investors. Most investors are driven to keep the property investment they have purchased and carry on receiving the rental yield produced for years to come, this means only a very limited number of Storepods per centre will ever come onto the resale market, this creates a high sale value and demand for the future.

Can I sell at any time?

All Storepods are purchased as a private commercial property investment, investors are free to sell, let or manage their own Storepod(s) at any time using any agent they choose. All sales subject to contract, terms and conditions apply, figures for illustration purposes only.

Where do Storepods fit within my investment portfolio?

A Storepod is a long term asset backed income generating commercial property, which has excellent projected capital growth. Storepods underpin and help diversify any investor’s future investment portfolio.

Your Questions Continued...

What is Self Storage?

With housing in short supply, a more transient population and more and more of us finding it difficult to organise and find space for our own personal possessions, Store First self storage offers the opportunity to rent a unit of space a ‘Storepod’, chosen from various sizes, in a safe secure location, where the tenant is the only person to own the key.

Access into the Storepod can be made at any time, and the self storage facilities offer excellent service and commitment 24 hours 7 days a week! The centres are secure and friendly with excellent business facilities. Each centre has a shop that sells items such as boxes, tape and bubble wrap.

What is the history of Self Storage?

The practice of storing goods in a unit of space rented from the owner for the purpose, which allows you to have sole access, is not a 1960s’ U.S. originated concept; it is a practice, which has existed around the world for centuries, if not millenniums – the Chinese were known to store their personal belongings in clay pots as long as 6000 years ago.

The practice of renting car garages for general storage has existed in the U.K. since the 1940s and 1950s when the building of rows of garages near housing developments became popular.

What the U.S. industry has done since the 1960s is take the basic concept and develop it, improve it and market it. Thirty years later we have a highly refined quality, flexible self storage product that is universally acceptable as a valuable utility concept by both consumers and businesses.

Whenever the concept of self storage is introduced to a new market place, in whatever country or region, it has proved to be embraced by the market and replicated.

Markets as far afield as South Africa, Brazil, Venezuela and Japan have shown similar development patterns to the early stages of the larger markets of the US, UK & Australia. In fact Europe’s growth trend is showing similar patterns to that of the U.S. in the 70s with growth potential in the short term (5-10 years) in the UK being 7 times current supply.

What is the capital cost?

Storepods range in price from £3,750 for a 25 Sq/Ft Room, up to £33,750 for a 225 Sq/Ft Room. The most common sizes are 75 Sq/Ft which cost £11,250 and 100 Sq/ Ft which cost £15,000. We believe Storepods are the most cost effective property investment with the highest yields on the market today. Multiple Storepods can be purchased using one Land Registry title deed; this saves on completion costs on larger property investment portfolios.

Is there VAT to pay on completion?

Storepods are VAT exempt; therefore there is no VAT to pay on completion of your property. There is also no VAT charged on rental income of your Storepod.

What rental income can I expect?

Storepod rental starts at £17 per Sq/Ft per annum. The 6-year tenancy/lease in place on your Storepod has fixed upwards only rental reviews and break clauses (for both parties) every 2 years. This produces an 8% yield on your investment within the first two years, this then is predicted to rise to over 10% return in years 3&4 and then surpass 12% return in years 5&6.

Is there a single title deed?

Yes, as with all UK property purchases you will receive the ‘Title Deed’ registered in your name at Land Registry from your solicitor after completion.

Is this a leasehold or freehold property?

Storepods are sold as a 999 year long leasehold property. (Banks consider anything over 100 years just the same as owning a freehold).

What else do I get with my Storepod?

All Store First self storage centres have excellent security alarm systems and the latest CCTV. Your Storepod can be accessed 7 days a week. All Store First centres have office accommodation available and include meeting rooms, free Wi Fi and break out areas to use free of charge.

Your Storepod has a high security steel entrance door with concrete secure ceilings. All Store First centres have free parking for all clients and a manned reception area during working hours. Boxes and packaging materials can also be purchased from all centres.

Your Questions Answered...

47

(26)

“

Store First Barnsley

Store First is flexible, it has flexible demand, and it meets the needs for us…

For a small business like myself starting off it just meets the needs and if you have any problems at all, the guys at the front desk are always there to meet your needs and always there ready to help.

I would recommend people to pop down and have a look around and see how clean everything looks, it’s just fantastic.

Kieran Fletcher – Business Consumer Funda

Store First Burnley

When Store First opened it was on our door step with our office across the road, so it’s quite important to us that we’ve got everything in a good location, near the motorway, good access,good service, we don’t need to be here when materials are being delivered, it’s all there handled for us. It’s great, it’s something that everyone should have, and should really consider moving into Store First because it’s so good, flexible and easy.

Sam Whitehead – Business Consumer Blue Bell Developments Ltd

Store First Wakefield

With Store First we have the space to store our bikes and equipment plus the use of the car park to do the training, so it’s very flexible. We initially wanted somewhere to store our bikes, and maybe find somewhere else to do all the training, but at Store First it’s all under one roof so it’s absolutely brilliant.

I think we have one of the best sites in the UK, when you look at the other places that do the training.

It has made a big difference to my business. I haven’t seem anywhere else within the storage industry that’s got these sort of facilities.

Robert Ashworth – Business Consumer RA Motorcycle Training

Testimonials...

What our customers say.

Store First Blackburn

Friendly staff, nice clean environment, nice big units, and after starting off with a small unit we’re now looking into getting bigger units.

Different from what I have seen before, it’s very ideal for us.

I have access to my goods anytime of the day, could be morning, could be evening and night, and the fact that when you come in that everything is in a secure area and so for me it’s therefore safe to come on my own.

Shiza - Business Consumer Beez Furniture

Store First Liverpool

It’s not very often these days that you see really outstanding service so I feel I must compliment you and your team on the professional way in which you assisted me with the move into your storage facility.

From the outset everything has been dealt with in a courteous and professional way, good price with great service makes for a winning combination every time - thank you.

Andy Davies - Rental Consumer Fancy Gal Lingerie (UK) Ltd

“

_“

“

49

(27)

(28)

Store First’s mission is to create market leading self storage facilities which

through our commitment to service, standards and value become the envy

of the industry, creating opportunities for our customers, investors and staff

to fulfil their potential.

T. +44 (0)1282 330 330

F. +44 (0)1282 412 680

Store First Limited

Group First House

Mead Way, Padiham

Lancashire, BB12 7NG

United Kingdom

Company No. 07463355

Contact us

@

Investor

[email protected]

Rentals

[email protected]

Investor

www.S1.co.uk

Rentals

www.storefirst.com

53 Store First Ltd 2015

(29)

Disclaimer

Store First are not authorised to give investment/tax advice and you should seek independent financial and legal advice on all information included in this document prior to making any investment decision. All forecasts are based on historical performance and are purely indicative.

The value of your property may rise or fall. No guarantees as to future performance in respect of income or capital growth are given either expressly or by implication and nothing expressed or implied should be taken as a forecast of future performance. This is not an offer to participate in a collective investment scheme as defined in the Financial Services and Markets Act 2000 (section 235) and as such buyers have no access to statutory or regulatory protections including the Financial Ombudsman Service and the Financial Services Compensation Scheme. Store First is not regulated by the FSA and is not authorised to offer advice to the general public concerning any regulated or unregulated investment. Although every care has been taken to make sure that the information in this brochure is accurate, Store First Ltd cannot accept any responsibility for mistakes or omissions. You should take your own professional advice before taking or refraining from any action based on the contents of this brochure which are only intended as a general outline to the matters referred to in it.