Investors in a Sidcup based self-storage business operated by Titan Storage have recorded a 2.5x return (including tax relief) on their £1 million original investment after five years. The investment was facilitated by Wealth Club, the UK’s largest broker of tax efficient investments for its private clients under the Enterprise Investment Scheme (EIS) for Active Management Solutions (6) (“AMS6”) in 2018.
AMS6 is a three-story storage facility offering 38,000 square feet of rentable space and prior to the sale was developed and operated by real estate investment manager, Ducalian Capital.
The self-storage business was sold for £10.4 million[1] to investment trust, Padlock Capital Partners[2] in March 2024, creating the exit route for investors.
The exit comes less than 12 months after Wealth Club investors successfully exited a second Titan Storage business, realising a 1.8x return on the EIS qualifying deal (including tax reliefs).
Gayle Bowen, Director of Direct Investments at Wealth Club said: “We’re thrilled to announce another profitable exit for our investors. 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.”
Robert Cherry, Director of Ducalian Capital 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.”
[1] https://listselfstorage.co.uk/industry-insights/padlock-partners-uk-fund-iv-completes-acquisition-of-self-storage-facility-in-sidcup-england/
[2] https://listselfstorage.co.uk/industry-insights/padlock-partners-uk-fund-iv-completes-acquisition-of-self-storage-facility-in-sidcup-england/
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