NANTWICH, England, June 18, 2014 /PRNewswire/ --
The Self Storage Association UK (SSA UK) is concerned that people may be investing in the various investment vehicles which trade as Store First, unaware of the potential risks that may be associated with such investment. It is also concerned that the material that Store First distributes to market this investment, which refers to figures from SSA UK's Annual Survey, does not accurately represent the state of the industry and may lead investors to make unrealistic assumptions about the industry and this specific investment opportunity.
To address these concerns SSA UK commissioned Deloitte LLP ("Deloitte") to undertake a review of the material made available to potential investors by Store First. A number of important questions were raised as a result of this review which the SSA UK have asked Store First to clarify. To date, no response has been received.
Key Factors For Potential Store First Investors To Consider
SSA UK recommend that any potential investors in Store First storage units consider the following key points before taking any investment decision:
- What will the impact be on the business model if VAT is charged on the rental of storage units to customers following a review by HMRC?
- How is Store First funding guaranteed returns to investors? Is this from operating profits, the proceeds from the sale of other storage pods to investors, or a different source?
- Compare the total value being paid for all the units in a Store First self storage site against the price at which stand-alone self-storage businesses have been valued and sold at recently.
- Consider if there is a realistic re-sale opportunity for, and exit, from this investment, particularly if Store First Management exits the business.
- Research the performance of investments based on a similar investment model that have been offered primarily in Australia, such as Ikin Self Storage in Townsville, Queensland (Alan Ikin) and Strata Self Storage in Melbourne (Mark Baranov).
More detail on these points is provided in a detailed paper available at http://www.ssauk.com or contact the CEO of the Self Storage Association, Rennie Schafer, at email@example.com or on +44(0)1270-623-150.
SOURCE Self Storage Association UK