Unit K, Riverside Industrial Estate, Littlehampton

In December 2011 Ducalian Capital, targeting a presence in the storage market, acquired a freehold industrial warehouse in Littlehampton, West Sussex.

A planning application for change of use was granted and the property was developed into an operational self storage facility by June 2012.

According to CBRE the estimated rental value of the property prior to development was £100,000 per annum reflecting £4.64 per sq. ft. and a value of £1.2m.

The investment strategy of the Partnership was to add a mezzanine floor to increase the nett lettable area (NLA) of the property from the original footprint of 21,539 to over 32,000 sq. ft. Based on the new footprint and storage pricing structure, the year 5 EBITDA is projected to be in the region of £461,523 reflecting a value in the region of £7m.

Investment Highlights

Equity Raised £2,825,000
Projected EBITDA £461,523
Target IRR 21%
Structure Limited Partnership

In the interim, debt financing will be explored and capital allowances have been calculated to provide income tax relief to investors.

Forecasts are not a reliable indicator of future results

Photos of the development and operating facility >>