After falling into receivership in 2012, Storage King Wellington (New Zealand) has finally been sold by the Receivers, with Kennards Self Storage successfully claiming it.
Kennards secured the purchase of the property just prior to Christmas after a second marketing campaign run by Colliers. The Receivers and Colliers first attempt to sell the asset was in July 2012.
For Australian-based Kennards, the Wellington acquisition gives it a 9th New Zealand location and is the company’s 80th across both countries.
Located at 19 Hutt Road, Thorndon it is 2 km’s from Wellington’s CBC and enjoys strong exposure to the motorway. The storage centre has 1,100 spaces and trading at 67% occupancy.
“This is the best storage location in Wellington” explains Sam Kennard, Managing Director. “The fit out quality is high and it enjoys a superior location. We are excited by this addition to our network”.
Kennards re-branding will be done immediately. The company also intends to undertake significant refit of the existing self storage units.
“Currently there is a mismatch in customer demand and actual size mix at this property. We will invest to rectify this so occupancy can grow to an acceptable level” Kennards says.
In addition, the property has expansion potential for a further 2,000 square metres of gross floor area. Kennards paid $5.8 million to secure the property. The sale process was run by Richard Findlay and Tim Julian of Colliers International.
Kennards entered the New Zealand Self Storage market in 2008 with the acquisition of a portfolio and a couple of independent operators. Kennards Self Storage serves the North Island with centres in Auckland, Tauranga, Hawkes Bay, Palmerston North, Wanganui and now Wellington.
This acquisition just prior to Christmas concludes a very busy year for Kennards. In November, they acquired the Depot Storage portfolio of four storage centres in the Sunshine Coast and North Lakes. This was a $17.25 million transaction, adding 12,600 square metres to the groups rentable space.
Earlier in the year, Kennards completed construction of a new centre in Klemzig in Adelaide’s north eastern suburbs and also opened in Frenchs Forest in Sydney’s north.
In addition to the 6 new properties, Kennards also expanded numerous existing locations, combined, this resulted in an increase its total available space by over 37,000 square metres in 2013 calendar year.
In 2014, the growth plans include new centres in the Sydney suburbs of Pymble and Macquarie Park, as well as a second location in Wollongong.
Kennards Self Storage remains a private family owned and operated business.