For gamblers it is all about the thrill. Yes, they want to win a ton of money as well, but part of that is the thrill that goes with either making or breaking the bank. Some view investing in a similar light. It can cost you a ton of money to have a stake in the game, and you can lose it fast or it can explode into a small fortune.
Everyone loves to make a small fortune, but no one like to lose money. For some the risk is okay, but others like to have a more stable–and productive—investment. In recent years the self storage industry has become just that.
In the United States you just need to take a look at the size of the industry to tell there has to be something good going on there. The total number of self storage facilities has reached over 50,000 in the United States—and there are right around 60,000 in the world!
You might think that would make the market saturated but it has not. In fact companies interested in acquiring self storage facilities are paying a pretty hefty price in some case. For example, Extra Space Storage recently paid $200 million for 17 self storage facilities in Virginia.
“Extra Space Storage is a growth-oriented company and the addition of these assets to our portfolio will continue to allow us to provide strong returns to our shareholders. We are excited by the quality, location and growth potential of the acquisitions we made in 2013,” Spencer F. Kirk, the Company’s Chairman and Chief Executive Officer stated.
While the industry is nowhere near the size it is in the United State anywhere else in the world, but there are some investors that are positioning themselves to be ready to take full advantage of it when it does.
DGM Minerals, a Canadian based company, has purchased five self storage facilities in Poland and the Czech Republic for 14 million Euros ($19.09 million). The purchase makes them the largest self storage operator in Central Europe.
“We’ve spent a lot of time and resources assessing this opportunity for DGM and we continue to feel that it has outstanding potential. Self-storage is an attractive sector to be in, and this particular opportunity gives us five established self-storage businesses, all purpose-built or renovated specifically for self-storage, and all in central, inner-city locations where real estate values are expected to grow…” DGM’s President and CEO, Peter Smith.
“DGM Mineral Corp. Signs Definitive Agreement to Acquire Self-Storage Properties in Poland and the Czech Republic.” EIN Newdesk; 10 January 2014.
“Extra Space Storage Announces $200 Million Portfolio Acquisition.” PRNewswire; 08 January 2014.