USS 1
USS1 was a private, wholesale Australian investment trust established by USSFM in 2014 to gain exposure to the growing UK self storage industry through an investment in a portfolio of established storage facilities.
FUND OVERVIEW
USS1 acquired 10 UK self storage centres in April 2014, in a joint venture with Big Yellow Group (BYG), one of the largest self storage operators in the UK. USS1 had an 80% ownership in the portfolio, with 20% ownership by BYG.
PROJECT VALUE
USSFM raised £8.1m to complete the 80% acquisition of the initial 10 centres. The initial portfolio was purchased for £20.6m. The Armadillo 1 Portfolio grew to 19 centres with a total capacity of 704,000 sq.ft. The acquisitions were funded via debt, linked to the improvement in trading performance and revaluation of the established portfolio. The Armadillo 1 Portfolio was sold for £86m in July 2021 to BYG.
Market Opportunity
- Exposure to the growing UK self storage industry through a portfolio of established self storage facilities.
- Opportunity to co-invest with BYG, a leader in the UK self storage sector.
- Portfolio Optimisation – increase enquiries, rental rates, occupancy and capacity.
- Pursue acquisitions of established self storage centres.
Strategy
The strategy was to acquire established centres in strong, regional markets and leverage off the economies of scale, lead generation and operating expertise of BYG to grow the occupancy, profitability and value of the centers under the Armadillo banner
Portfolio
Outcomes
- Equity IRR of 31%
- Invested equity multiple of 5.8x
