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Scheme Categorisation

AIF

Investment Objective

Seneca’s team has identified the opportunity to acquire a number of freehold and/or long leasehold storage facilities to further expand the estate of storage assets that they manage.

Seneca believe that the underlying fundamentals of the managed storage sector combined with the inherent asset backing of the storage sites has significant appeal. The sector benefits from low fixed operating costs, recurring revenues, low customer concentration and has also enjoyed increasing demand and yields in recent years. With the management team having already reached heads of terms in relation to the first three target sites in which the Fund is looking to invest, Seneca have targeted an initial fundraise of £10m.

Investor commitments will be invested in 1 or more EIS qualifying managed storage companies. Each EIS qualifying company intends to acquire suitable sites that will facilitate either a new build development of, or conversion of an existing building into, a managed storage facility. At a fundraise of £10 million, each company intends to operate two managed storage facilities.

The investee companies will utilise the services of an experienced Operating Partner (SureStore Storage Ltd), who will be responsible for delivery of the business plan.

Having acquired and fitted out the storage sites, the business plan is to drive occupancy levels, which against a relatively fixed cost base is expected to lead to increased net operating income. (Net operating income is one of the key metrics Seneca believe will be considered as a part of the exit strategy).

Target Return

1.2x investment amount.

Target Diversification

Minimum 1 company.
Targeting (maximum) 2 companies.

Exit Strategy

Expecting multiple possible exit routes. These would likely include a larger trade player seeking to bolster its footprint in the area through the acquisition of a well invested and profitable portfolio of managed storage facilities. Seneca intend to exit the Fund’s managed storage facilities during the fourth year following full investment.

Fees

Initial fee – 2% + VAT, paid to the Manager by the investee companies.
Annual Management Charge – 2% + VAT, paid to the Manager by the investee companies.

Nominee & Custody Arrangements

The nominee is Woodside Nominees Limited, the Custodian is Woodside