Self Storage Investment | Commercial Property Investment

SIPP Approved Investments QROPS Approved Investments QNUPS Approved Investments Direct Investments
SIPP Approved InvestmentsQROPS Approved InvestmentsQNUPS Approved InvestmentsDirect Investments
  • Stable Returns. Providing 10% per annum net average annual returns. Paid annually in advance.
  • Liquidity. Exit at any stage after exchange of contracts. Guaranteed buy back scheme available in Year 5.
  • Investor Protection. Each investor obtains their own personal title deed registered at the UK Land Registry.
  • £180 Million. Invested since its launch in 2010, initial investors are now in to year 3 of their lease and enjoying 10% annual net returns.

Given the meteoric rise in the popularity of self-storage facilities, the UK self-storage industry has provided the highest growth and yielded the most significant returns in the commercial property industry for the past decade.

At SIPP Solutions we can demonstrate exactly how you too can enjoy safe, secure and consistent returns on your investment – year on year.

Fill in the simple form below to receive more information.

  • Low entry starting at only £3,750.
  • The highest yielding sector of any commercial property investment within the last decade.
  • Since launch, over £110 million of storage units have been acquired by SIPP investors.
  • The Self-Storage company takes a 6 year lease back of the storage rooms providing secure rental income.
  • Each storage room pre-tenanted upon completion. With upward only rent review only 2 years.
  • A fully managed, maintained and insured investment.
  • Investors receive a discount of up to 25% off current RICS Commercial Property.
  • Proven resale strategy with a 25% projected profit on initial investment.
  • Exit options available at any time. Qualify for the storage company’s buy-back scheme at the end of year 5.
  • Investors can call for the lease to be ended on the second and fourth anniversaries should they wish to do so, for example re-sale purposes.
  • Investors may ask the Self-Storage company to sell their storage rooms on their behalf at any time- at a minimum of 25% above the initial purchase price.
  • Investors are not obliged to charge VAT to their tenants unlike the large national storage companies who must charge VAT.
  • Purchase direct from the developer (no finders-fee).
  • The storage units are sold to investors without VAT on the purchase price- saving investors 20% tax (at the current VAT rate) of the initial investment.
  • A hands-off, hassle free investment fully managed and maintained on your behalf.
Year Self Storage Investment £10K Investment £10,000 Bank Deposit @ 1.75% p.a. compound
Year 1 £10,000 invested
End of Year 1 £10,800* £10,175
End of Year 2 £11,600* £10,356
End of Year 3 £12,600* £10,541
End of Year 4 £13,600* £10,728
End of Year 5 £14,800* £10,920
Total £4,800 £920
* Rental income paid quarterly in advance.
  1. Stage 1:
    • Complete and sign the Contract of Sale Stage 1
    • Pay the purchase price into the bank details supplied.
    • Become immediately eligible to receive your 8% returns (1).
  2. Stage 2:
    • You receive the title deeds & completion pack for signature (2).
    • You supply the information needed for your ID pack (3).
    • You sign and return the signed completion pack & ID pack.
  3. Stage 3:
    • Your commercial property transaction is completed.
    • Your title is registered at the UK Land Registry (4).
    • You receive your copy of the completed paperwork.
  1. Please complete the HMRC Non-resident landlord scheme application in order to receive your full 8% returns (only for non-UK-residents).
  2. Your completion pack contains – Title Deeds, 6 Year Lease & Buy-Back option along with your final completion contract, please sign and return all.
  3. Please supply a copy of your current passport or photo driving licence. Please also supply a recent utility bill registered to your home address.
  4. The Self-Storage company will assist you with your UK title deed registration.

Please fill in the form to receive further information on the Self Storage Investment.

The UK’s Self Storage Companies have seen the highest growth and highest yielding returns within the commercial property sector over the last decade.

Self Storage Growth

  • Private rentals – make up 40% of current users
  • Business rentals – make up 60% of current users
  • Significant under supply & high current demand
  • Just 0.4 Sq Ft per person of self storage in the UK compared to 7.4 Sq Ft in the US, and the American self storage market is still growing at 10-15% per annum.
  • The UK self storage industry has previously been focused on London and the South East, we are ensuring we meet the demand across the UK.
The demand for self storage units is being driven by the following:

  • House moves, downsizing, divorce, increase in number of single occupancy households.
  • Smaller businesses who need to archive files, store stock and equipment will normally rent bigger spaces.
  • Domestic / private rentals make up the largest proportion, but storage by commercial tenants is growing rapidly.
The intention of our self storage provider is to build the company to be one of the top suppliers in the UK self-storage market by using the same successful blueprint as many other large PLC self-storage companies, but with an improved business model and aggressive profit driven marketing strategy. They provide additional services which create a clear distinction from their competitors.

  • Superior Specifications & Facilities – Office, gym, breakout area’s, packaging facilities, van hire, pick up and drop off service, forklift truck, free wifi, mail services, PO Box address.
  • State of the Art Security – 24 hr CCTV, coded electric gates, perimeter security fencing, smoke detectors, fire alarms, and nationwide insurance.
  • Price comparisons based on a 25 Sq Ft unit on a per week basis:
    • Safe Store £20.40
    • Big Yellow £18.40
    • Armadillo £16.40
    • SIPP Solutions Self Storage Provider £8.17
  • Competitive Pricing – 50% below the competition + VAT Exempt resulting in high tenancy rates and happy clients.
  • Clients purchase Storepods on a 999 year long leasehold interest (25% below current RICS market value) through UK Land Registry
  • Leased back to the Self Storage Management Company on a 6 year sub-lease which guarantees your rental returns.
  • The Self Storage Management Company will undertake all leasing activity on behalf of the investor.
  • Buy back at year 5, displaying full developer confidence in the investment. This gives clients a guaranteed exit and therefore a guaranteed return on investment.
  • Tax Efficient – Income Tax relief & VAT exempt
The table below clearly illustrates the incidental costs of ownership and shows the Net return on the invested capital. We believe in presenting all information transparently and concisely so that the investor has all the information and can proceed to purchase with a clear decision.

Price List – Years 1 & 2 – Based upon an 8% Return
Costings of Self Storage

Years 1 & 2 are guaranteed at 8%.
Fixed rental yields, with fixed rental uplifts every 2 years

  • Year 1 8%
  • Year 2 8%
  • Year 3 10%
  • Year 4 10%
  • Year 5 12%
  • Year 6 12%

All figures are NET of ground rent, service charge and management fee. All rental income paid to investors quarterly in advance.

Capital Growth in Self Storage
2010 Valuation
25 Sq Ft Storepod is valued at £3,750
2012 Valuation
25 Sq Ft Storepod is valued at £4,750

This has seen a 25% increase.

Factors – Yield compression, increased demand, strong occupancy.

N.B. All valuations are RICS accredited.
RICS Valuated

Storepods are so competitively priced when new, they will also make an attractive sale proposition in the future. They may be sold by the following methods:

  • Transfer of ownership.
  • Resale to another investor – A Storepod with a proven rental track record will be an attractive investment for other investors looking to purchase income
  • Resale to existing occupiers – Many tenants who let the Storepods on long term deals will welcome the opportunity to purchase rather than rent their Storepod as this will reduce their overheads, secure an appreciating asset for their business and bring tax benefits.
  • Resale to a large PLC – Many tenants who let the Storepods on long term deals will welcome the opportunity to purchase rather than rent their Storepod as this will reduce their overheads, secure an appreciating asset for their business and bring tax benefits.
  • Resale to Self Storage Management Company through buy-back scheme – In year 5, Investors have the option to enter the guaranteed buy-back scheme. In this scheme, the Self Storage Management company will guarantee to buy the Storepod back off the investor for the original price paid within the next 5 years.
  • Access the best performing asset in the commercial property sector.
  • The Self Storage Company’s superior business model.
  • UK investment into directly owned commercial property.
  • Predictable income.
  • Capital appreciation.
  • Low entry levels and flexible exit.
  • Tax efficient and potential currency benefits.