Malcolm's Blog

Banking Blues – Part 2

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Over the last several months I have needed to speak with major Banks in all of our capital cities regarding various self storage loan facilities coming due for refinance. On each occasion, it was apparent that most of the banking people I spoke with have little understanding of self storage. At a recent Self Storage […]

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Banking Blues – Part 1

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I recently held a phone conversation with a major Bank property officer. He couldn’t understand why adopting an established yield return per square metre, on a strongly performing and “proven” operator could be transferred to that facility’s next stage. Whilst the overall unit mix would of course change, including the addition of many more ...

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Agency Opportunity

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Despite the current post-GFC environment going concern, Self Storage facilities are still selling (albeit in small numbers), scattered around the country. Several provincial city facilities have recently sold at yields indicative of the lack of good quality assets in particular areas. The attraction of properly-run, estate agent operated (small) fa...

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The Credit Crisis

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I was recently speaking to the property people in four of our major banks. They each, in their own way, told me that their bank had lost its appetite for risk, lending has slowed appreciably, bank portfolios are being re-weighted out of property exposure, and good clients do not automatically get preference over new loans, […]

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Cap Rates 101

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A capitalization (cap) rate, in simple terms, refers to the net return expected from an investment. A going-concern storage business is worth what someone is willing to pay for it (or sell it for), based upon its perceived (higher) future net income earning capacity and value in the buyer’s ownership, and the risks involved in […]

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Give your banker something to smile about

Posted by Malcolm in Articles with No Comments

Hello all; my name is Malcolm Collins and I have been consulting to the self storage industry for more than 20 years in all States and New Zealand. Other than the period following the introduction of the GST into this country, I haven’t found so many people sharing the same subdued view of the industry […]

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