THE agent says a new Illawarra project will enable the public to buy rather than rent their own storage space, while also providing opportunities for investors.
Silo is set to be a three-level, storage space warehouse within the industrial estate at Unanderra, located at Warehouse Place.
There’s been lots of mini-storage in our region before, but no one’s ever strata titled them and sold them off.- Simon Kersten
The development is a joint venture between Wollongong’s Bottlebrush Projects and Sydney-based Admark Constructions.
Selling agent, Colliers International’s managing director Wollongong Simon Kersten said they were now selling units, with about 190 of them available.
Sizes range from seven sqm to 63sqm.
Prices include a Level 3 unit nine sqm in size for $42,022, a Level 2 unit 16sqm in size for $79,454 and a 60.90sqm Level 1 Unit for $228,031.
The building has not been constructed yet, but Mr Kersten said they hoped construction would begin in the first half of next year.
Mr Kersten said the facility enabled investors to “own a commercial property for as little as $34,000”.
“If you don’t want to use the storage space and you’re just looking for an investment, then you pay your $34,000 and then the developers will sign a three-year lease,” he said.
“They will pay you $3400 per year… Then they will also pay all your outgoings.
“Your council rates, strata rates, management, all that stuff gets paid, so you’re totalling that ten per cent net for the first three years.
“We’ll be holding that ten per cent in our trust account.
“It will be paid by the developer on settlement.
“We will have it in our trust account and then every month we’ll let the month’s rent out of that.
“You don’t have to take the ten per cent rental guarantee.
“If you wanted to use the space for storage you can just buy one and use if yourself.”
Mr Kersten said this was a “new idea on a number of fronts” for the Illawarra region.
“There’s been lots of mini-storage in our region before, but no one’s ever strata titled them and sold them off,” he said.
“There have been whole buildings built and sold, but never the individual units.
“And also this ten per cent guarantee for three years – that’s pretty rare.”