Tag Archives: Posts by Malcolm Collins

Food For Thought – June 2017

A typical concern of self storage owners is the freehold property worth. While this used to encompass just its real assets (land, buildings, site improvements, fittings and fixtures, etc) and its notional leasehold or business value elements, it now also needs to include its “digital real estate”. This has been defined as website names, social […]

Food for Thought: Going Concern and Leasehold Self Storage Values

A typical going concern self storage in Australia and New Zealand comprises the overall freehold property worth including its real assets (land, buildings, site improvements. infrastructure, fittings and fixtures) and its notional leasehold or “business” value element. In recent times the growing adoption of leasehold interests has occurred as operators and owners address the issues […]

The banks & 2012

The Reserve Bank’s last reduction in the official cash rate is, amongst other things, recognition of the multi-speed economy affecting Australian business and its customers. The uncertainty created by the GFC and its aftermath has included the withdrawal and tightening-up of traditional financing and credit sources over time by the major banks to the property and […]

Country Blues

It’s of continuing concern to me that having just valued another provincial (smaller scale) self storage facility operated by a local estate agent, I have once again been confronted with management that is unhelpful, reactive and lacking focus, using reporting tools that are simplistic and too high-level, and by agency staff themselves who are removed […]

It’s official – Banks want to lend you money again!

In quite a few conversations I’ve had with clients and individual bankers around the country recently it is apparent that the major banks are again confirming self storage’s risk profile and ongoing business prospects as something they would like to finance, in stark contrast to their opinions of the industry 6 to 12 months ago. […]

Banking Blues – Part 2

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 […]

Banking Blues – Part 1

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 ground […]

The Credit Crisis

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, […]

Cap Rates 101

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 […]