Self storage is looking attractive to some investors.
Self storage is looking attractive to some investors. StorageOne

Self-storage investment boom hits Queensland

STRONG demand for Queensland's self-storage facilities from income-focused investors is pushing up sale prices in the lucrative asset class.

In a $4.65 million deal, StorageOne Rockhampton on the state's central coast has been snapped up by interests linked to the Store Local Group.

The design-built facility comprises 295 storage units and was sold with a DA permit in place for an additional 127 ground level units.

It is one of only three major self-storage facilities on the north side of Rockhampton.

Box Commercial's Robert Stanley-Turner, who negotiated the deal, said the property sold "well in excess of initial estimates".

It followed the sale of another Queensland self-storage facility he brokered on the Sunshine Coast.

Airport Self Storage in Marcoola, an early-style facility with 119 units and permits for additional units, sold for $4.5 million to National Self Storage. It drew strong buyer interest due to its location just outside the expanding Sunshine Coast Airport.

The two properties had a similar gross income and sold for close to the same yield, around 7 per cent, despite a large difference in their assessed land values.

The assessed land values at the time of the sales of the Rockhampton and Marcoola facilities were $735,000 and $1.5 million, respectively.

Mr Stanley-Turner said the two sales in the booming self-storage sector highlighted the importance of reliable income for investors and the paradox in the way the market valued the assets.

He said land value in an increasing number of cases counted for little in the overall price and yield struck.

"It's a bit of a paradox, considering we're used to land value being a major determinant of selling price," he said.

"The two facilities had a similar gross income, so perhaps it underlines the focus of self-funded retirees and investors - reliable income really is king in today's world."

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