National Storage swallows Burleigh Heads storage business

Major storage facility operator National Storage has won the race to secure an established Gold Coast business in the tightly held storage shed market.

National Storage paid $4.15 million for Burleigh Town Storage and Removals in Burleigh Heads after its long-time owner-operators decided to hang up the keys and enter retirement.

The property at 61 Township Drive was offered with more than 90% occupancy and an immediate annual net income of more than $350,000, which saw multiple potential buyers make a play for it.

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SP Commercial’s Silvio Bevacqua, who facilitated the sale with colleague Gordon Poole, says the business’ track record and instant income weighed heavily in its favour.

The site at 61 Township Drive could be developed further.

“Storage facilities and other, similar businesses are in a great position to sell at the moment, with operators seeking to purchase what is a pre-established immediate income producing business where there is possibility to further increase the revenue with extension and capital works,” Bevacqua says.

“These types of properties are rare and buyers are always plenty, but they also require substantial equity to purchase which often eliminates many buyers due to the net yields at which they typically transact at, especially in such a prime area as Burleigh Heads.”

The 2729sqm site included 147 storage units, a modern office and an on-site manager’s residence. It also has the potential to add further value with a second stage of development, subject to council approval.

Built in 2007, the business was owned and operated by a local couple and received interest from numerous national operators throughout the sale campaign.