One of the country’s biggest self-storage and small warehouse providers has acquired a development site in Ringwood.
Sector Property Group is planning to replace 93A Heatherdale Road with a two-level, architecturally designed facility containing nine office-warehouses, five strata offices and 55 own-your-own storage units.
The Ringwood property will be the fifth Sector Property Group facility in metropolitan Melbourne to be branded The Base.
“The Base Ringwood has been designed for modern business, tradies and people looking for storage options to fit caravans, extra cars, boats and other lifestyle equipment,” Sector Property Group director, David Loakes, said.
“The storage units on offer are ideal for downsizers and people who want to reclaim a garage or shed, with access 24-hours a day, 365 days a year”.
A shared kitchen, meeting rooms, bathroom and shower facility, and a large car park will also form part The Base Ringwood. The development also features CCTV, Wifi and power connectivity to every storage unit.
Shells range in size from six to eight metres in depth and four to six metres in width.
“There is strong demand in Ringwood for smaller industrial spaces,” Mr Loakes said. “This trend is being attributed to the rise in pureplay online businesses seeking small dynamic warehouse solutions to allow the movement of goods in key locations”.
“The own-your-own stores also provide home-owners separate premises to store excess items and small to medium trade businesses keen to own their workspace through self-managed super funds,” he added.
The developer forecasts the units, or “warehouse stores”, sell to investors on yields of between 6 and 6.5 per cent – which is high compared to residential, retail and office property.
Elsewhere in Melbourne, Sector Property Group has constructed The Base complexes in Brooklyn, Point Cook and Yarraville.
In Mitcham, Sector Property Group is this month about to begin construction of a The Base complex at 14 Simla Street. With 50 storage units, five strata offices and a childcare centre, 90 per cent of this complex has already been sold-down to investors.
Self-storage is one of the industry’s little-known commercial property sub-sectors. But it is also one of the most affordable, within reach of investors with budgets of less than $100,000.
Popular with renters, the investments are also attractive for their low-outgoings (these complexes don’t typically include elevators or underground car parks – two of the most expensive features for an Owners Corporation to maintain).
Perhaps the highest-profile local investor in the sector is Brendan Minogue – the middle sibling of popstar sisters Dannii and Kylie – who added several CBD self-storage units to his property portfolio in 2015 (the family also owns shops and apartments and in 2007 acquired a major office in Church Street, Hawthorn, for $12.5 million).