One of the toughest things to do is decide what to invest or who to invest your hard earned money with. Yes, when it comes to business there is a risk of losing, but with risk often comes great reward. As true as that may be, it is still no consolation when you end up losing your shirt (and then some) due to a bad investment.
The trick than becomes figuring out what to invest in. You want something that is safe, but you want to actually make some money in the process. The question then becomes what business/industry is safe yet will also give you a good return on investment.
Over the last few years, the self storage industry has appeared to be just such an investment. Strategic Storage Trust Inc. is one such company. Since forming in 2008 they have acquired over 60 self storage facilities with assets of around $375 million and growing.
"This is an important milestone for our company. Three years ago, we started out with no assets, no liabilities and no shareholders in one of the worst economies in modern memory," said H. Michael Schwartz, SSTI's chairman and CEO. "In the midst of the financial meltdown, we saw opportunity and were able to build the company from zero to over $375 million in assets. I'd say we've started off in good form.”
If you need further proof of the strength of the self storage industry than just take a look at the growing number of self storage units around the world.
Strategic Storage Trust Inc. just bought their first facility in Canada, one with over 1000 individual storage units for $14 million dollars.
"Now that the market has bottomed out and is on the upswing, we're well positioned to continue to diversify and grow our portfolio," said Schwartz.
Arcapita, an investment firm based in the United Arab Emitrates recently sold of the ownership they had in 72 self storage units in Europe for $586 million to Shurgard Europe.
Down under in Australia another self storage company has opened a new branch. Metro Storage has open on in Marrickville, New South Wales, Australia.
In Thailand, it took a lot less capital to get a new My Storage opened up, a little more than$1.6 million.
“Patong was chosen because many people live there temporarily, especially foreigners, and they might like to keep their belongings secure,” said Managing Director Sukanda Chiaranussati
Stor-age Self Storage is preparing to open another facility in Cape Town, South Africa. This one will be have about 8,000 square feet of storage space and contains around 650 units.
Typically when the rest of the world copies something that the U.S. is doing you know it's a good thing. Since that is what they are doing in regards to the self storage industry there must be something to investing in this industry.
“Strategic Storage Trust, Inc. Celebrates Anniversary With Strong Growth Stats; Increases Assets To O.” PR-USA.net; 15 April 2011.
“Arcapita sells European storage business stake.” Bloomberg Business Week; 03 April 2011.
“My Storage Opens $1.7M Self-Storage Facility in Patong, Thailand.” Inside Self Storage; 18 October 2010.
“Stor-Age Develops Self-Storage Facility in Johannesburg, South Africa.” Inside Self Storage; 14 April 2011.