Sidcup storage facility sale records 2.5 times' return for investors, says Wealth Club

A three-story storage facility in Sidcup, south east London, has been sold for £10.4 million to investment trust Padlock Capital Partners, realising a 2.5 times' return for investors.

AMS6, operated by Titan Storage, offers 38,000 sq ft of rentable space, and the original investment of £1 million five years ago was facilitated by Bristol-based broker Wealth Club for private clients under the Enterprise Investment Scheme (EIS) for Active Management Solutions (AMS).

READ MORE: Big Yellow self-storage development gets underway in Slough

The exit of the storage centre comes less than a year after Wealth Club investors successfully exited a second Titan Storage business, realising a 1.8 times' return on the EIS qualifying deal, including tax reliefs.

"We’re thrilled to announce another profitable exit for our investors," said Gayle Bowen, director of direct investments at Wealth Club.

"AMS6 represented an unusual EIS opportunity in that the investment was ultimately secured by the value of the freehold property operated by the business.

"Investment into EIS qualifying opportunities can provide investors with considerable tax incentives to fund early-stage businesses including 30% income tax relief and profits being exempt from capital gains tax if the shares are held for at least 3 years," she added.

Robert Cherry, director of real estate-focused private equity firm Ducalian Capital, which developed and operated the facility before its sale, said: "This exit has produced a fantastic return for shareholders and is our 10th exit in the sector.

"AMS6 opened shortly before the Covid-19 pandemic and demonstrates the resiliency of the self-storage market during Covid, and in the post Covid economy.

"The overall return for shareholders proves the significant benefits of the EIS wrapper and we look forward to founding further opportunities in the market moving forwards."

Wealth Club provides high-net-worth individuals and investors with investment opportunities not typically available through mainstream stockbrokers or financial advisers. It was set up in February, 2016 and is now the largest non-advisory broker of tax-efficient investments such as VCTs, EIS and inheritance tax portfolios.