33137 europe:layout 1 16/10/08 17:21 page 1 · welcome to the fourth and final edition of self...

33137 Europe:Layout 1 16/10/08 17:21

Welcome to the fourth and final edition of Self StorageEurope for 2008. The FEDESSA General Council metrecently for the second time this year, in Brussels. TheCouncil was pleased to note (as you will no doubt haveread) that the CEN Standard has been given full supportthroughout Europe. So, congratulations and thanks areextended to all involved. It should be “on the streets” laterthis year at national level.

We are delighted to announce that, at the meeting, the Norwegian Self StorageAssociation was welcomed into the FEDESSA family, as a provisional member.There is an article by the newly elected Norwegian representative to FEDESSA, NilsØyvind Hillestad, on Page 13. Links have also been established recently withpotential new operators in Cyprus, Hungary, Israel, Romania and the Ukraine. I also reported upon some of the general findings from our research to date (mymain task for the time being), examples of which can be seen in the followingtable: While the so-called “Global Economic Slow Down” is having some effect on yourbusinesses, we have found that the industry throughout continental Europe is

certainly growing, albeit slightly slower than was predicted a year or so ago. Italso appears that the number of facilities will increase by at least 5% in the next12 months. This research is ongoing and it will clearly be of interest to all concerned, as wellas assisting those of you looking to further expand your businesses. It is intendedthat the 2009 Survey will go into even greater depth. I look to you all for yourcontinued assistance and support and ask that you kindly forward any newinformation to me at: [email protected] results of the 2008 Survey will be presented in greater detail at the FEDESSAEuropean Conference in Dublin, 11-13 March, 2009. We have decided thatthe theme of the conference will be “Exciting Times Ahead” and we are delightedto announce that, amongst others, Roger Martin-Fagg will be speaking, followingon from his outstanding performance at both the SSA UK and FEDESSAConferences in 2007/8, where he was very well received. Meanwhile, we hope to have a new website up and running by December. It isintended that every member of each National Association will be given a uniqueusername and password, to access the various members’ pages.You will notice in the Self Storage Europe section of this edition of the magazinethat there are more articles, and very good ones they are too. I wish to thankthose of you who have taken the time to write them and I hope that the increasedinvolvement from all of you will continue. This should now be the springboard forthe magazine to flourish, as an essential communication tool for us all. If youwould like to have articles featured on you and your facilities please e-mail meat: [email protected], I wish the UK and Spanish Associations success at their NationalConferences, which are scheduled for November and I hope that many of you willbe able to attend.

Chris Johns (European Co-ordinator)

contents

News Feature . . . . . . . . . . . . . . . 6

24-hour Self Storage in Palma

FEDESSA Profiles . . . . . . . . . . . . . 7

FEDESSA General Council

Member Profiles

Company Features

SelStor Self Storage . . . . . . . . . . . .9

Swedish Self Storage OperatorNominated for . . . . . . . . . . . . . .10

City Self-Storage opens new . . . .15

Une Pièce en Plus . . . . . . . . . . . .18

VIP Storage grows quickly . . . . . .19

Country Features

Self Storage in Russia . . . . . . . . .11

The Norwegian Self StorageAssociation . . . . . . . . . . . . . . . .13

Self Storage in Ireland . . . . . . . . .16

Cover

European Conference 2009, Dublin11 – 13 March

• European Speakers, including Roger Martin-Fagg

• Motivational Speakers

• Trade Show

• Networking Opportunities

To subscribe to the Focus and Self Storage Europe magazine, please contact:

Self Storage Association, Priestley House, The Gullet,Nantwich, Cheshire. CW5 5SZ

Tel: + 44 (0)1270 623 150Fax: + 44 (0)1270 623 471E-mail: [email protected].

The current annual subscription is £4.00 per issue (UK and Europe)

EDITORIALNews items and articles on all aspects of the self storageindustry are welcomed, and should be sent, together withphotographs if appropriate, to the editor, Stan McKerron:

E-mail: [email protected] expressed in the Focus magazine are

not necessarily those of the SSA UK and FEDESSA

ADVERTISINGPlease contact Stan McKerron:

48 Talbot Way, Stapeley, Nantwich, CW5 7RQ.Tel: + 44 (0)1270 624 622E-mail: [email protected]

Making strides on Europeanstatistics and communication!

5

Average Net Rentable ≈ 4,000 m2

Average Number of Units/Rooms ≈ 600Average Size Unit/Room ≈ 7 m2

Average Length of Occupancy ≈ 22 weeks

33137 Europe:Layout 1 16/10/08 17:21

thes to

theonaeen

6

ope NEWS FEATURE Self Storage Europe

24-hour Self Storage in Palma

ExtraSpace Self Storage has been operating in sunny Palma deMallorca for nearly three years. The self storage company, which is located very conveniently fiveminutes by car from the centre of Palma, is only yards away fromthe ONO Stadium, home to the local football team, RCDMallorca.ExtraSpace rents individual units, which are dry, secure andconvenient, from just 1 m² for as short a period as one day. Thismodern storage facility offers the most convenient storagesolutions available in Mallorca and ExtraSpace are proudmembers of the Spanish Self Storage Association.Since opening its doors in 2005, the company has made every

effort to provide its customers with value for money. Firstly, thepurpose-built facility opened a large parking lot for up to 50vehicles and customers can load and unload their vehicles easilyand conveniently from just outside the main doors.Some months later a free pick-up service was introduced; this isa very simple and convenient way for customers to transport theirgoods to the storage facility.Recently, ExtraSpace introduced another new service for itscustomers: 24-hour access to their storage rooms, 365 days peryear, including Sundays and public holidays. And, last autumnthey finished installing a second lift for customers, which perfectlycomplements the freight lift installed in early 2007. Many other services and special offers are available at thefacility, from the provision of boxes and packaging materials toa meeting room that can be rented by the hour. ExtraSpace Self Storage expects to open a new centre on theSpanish mainland in the coming months. Madrid, Barcelonaand Valencia are being considered, although no area has beenruled out.

33137 Europe:Layout 1 16/10/08 17:21

7

FEDESSA PROFILESVolume 4, 2008

Cesare Carcano studied at the privateuniversity “Bocconi Business School” inMilan; after obtaining his degree, hestarted working in the American foodindustry with Campbell’s New ProductsDivision, in Brussels.

After gaining four years experience inmarketing new products, Cesare wasappointed General Manager of Generali

Insurances Group, a Brussels-based, joint-venture consultingcompany, where he developed several international projects. In1996 he became a member of the board and Vice PresidentOperations of the Family Group, working in the Transport-Logistics and Real Estate fields.

In 1999 the Family Group entered the self storage sector,becoming the first operator in the Italian market, with the brandname “Casaforte Self-Storage”. Cesare was appointed CEOwith responsibilities for operational management anddevelopment. In 2004 Casaforte started operating inSwitzerland, where Cesare became General Manager. In 2007the “Casaforte Moving Company” was established, through aspin-off from the moving activities of the Group; today it has 20branch offices in Italy.

Cesare is a founder of the Italian Association of Self-StorageEnterprises (AIS), a co-founder of the Swiss Association of Self-Storage Enterprises (3S) and a member of the correspondingboards. He is also a national expert for the self storage sectorwith the National Board for Rule Standardization (UNI). Atpresent he is Vice President of the Carcano Group (Transport-Logistics and Self Storage).

Casaforte is the main Italian operator in the self storage fieldwith 21 facilities and a further four under construction. Inaddition, Casaforte has two self storage facilities in Switzerland,one in Basel and the other in Lugano.

Russell Jordan, who was the Chairman ofThe Netherlands’ Self Storage Associationfor five years from its inception, is now theAssociation’s Treasurer. British born, butliving and working in Holland for morethan twenty years, he was employed inReal Estate Development and InternationalSales and Marketing, before becominginvolved in self storage.

Russell is the founder and CEO of City Box Self Storage, whichhas been operating in The Netherlands since 1998; hiscompany presently has 24 facilities and it is still expanding.

He was also very much involved in setting up The Netherlands’Self Storage Association, in 2002.

Tuomas Kurittu, who is 54 years old, hasa wife, Maritel, and three lovely children.His son, Antti, is 26 years old and isstudying Security Management at college,while his daughter, Maija, is 25 years oldand already runs her own business, lettingpractice rooms to rock’n’roll groups. Hisyoungest, Mark, is 18 months old and asyet has had no major achievements,beyond being the apple of his father’s eye.

Tuomas graduated from the Helsinki School of Economics in1979 with a Bachelor’s Degree in Marketing and BusinessAdministration, and he has been self employed since 1981.

Tuomas, who first saw a self storage facility in America in 1987,had the foresight to start the Minivarasto storage business witha partner in 1993, at the bottom of the big property slump.Minivarasto quickly grew into a chain of eight facilities inHelsinki, Turku, Tampere and Stockholm and they are all stilltrading successfully.

He is a founding member and still serves on the board of theFinnish Self Storage Association, the first European associationof its kind outside the UK. The Finnish Association was initiallya member of the SSA UK, because there was no other Europeanumbrella organisation around at the time. He has also beenFEDESSA’s Finnish representative and has actively participated inthe creation of the European Standard for Self Storage. Tuomasalso regularly attends and offers his support at the European SelfStorage Conferences, where his favourite pastime is swappingshirts at the bar after 10 o’clock.

Tuomas supports a number of charities through Minivarasto Oy.Most of the financial support goes to Abuniekat Ry, a charitableLutheran church organisation working with ethnic Finns in Russia,just beyond the Finnish border.

Soňa Fialová obtained a degree in AdultEducation & HR Management from theUniversity of J. A. Komenský in Prague.

In 2000 she started her working career inthe Sales Department of TRW AutomotiveElectronics Ltd. Soňa was responsible forthe retail sales of automotive componentswithin the Czech Republic, Italy andEastern Europe.

Two years later she joined the Sales and Support Department ofthe Raiffeisenbank, where she was responsible for selling bankproducts through a network of external financial advisors.

In 2006 Soňa was appointed General Manager of City Self-Storage in the Czech Republic.

FEDESSA General CouncilMember Profiles

Cesare Carcano Tuomas Kurittu

Soňa FialováRussell Jordan

33137 Europe:Layout 1 16/10/08 17:21

33137 Europe:Layout 1 16/10/08 17:21

9

COMPANY FEATUREVolume 4, 2008

When Michael Fogelberg opened his thirty-seventh self storagecentre, it felt very different from the previous openings he hadorganised. For the first time, the colours of the store were whiteand green, and no longer beige and brick red.Michael came across the self storage concept in Seattle, whenmoving back to Brussels in 1992 after having studied BusinessAdministration at the Seattle University. “I thought it ought to beeven more successful in Europe, which has a higher populationdensity and smaller housing; there had to be a real need forextra space.”Back in Brussels, he convinced his father, Åke Fogelberg, a longtime real estate entrepreneur, and Patrick Metdepenninghen tostart up self storage. Very quickly, Shurgard Storage CentersInc., the Seattle-based operator that was acquired by PublicStorage last year, joined the venture and started opening storesthroughout Europe under the Shurgard brand name. Between 1994 and 2004, Michael first developed six stores inBelgium and then 30 stores in Sweden and Denmark, whichhave been among the most successful stores in Shurgard’sEuropean portfolio. During the same period, PatrickMetdepenninghen raised about €1.6bn to fund their Europeandevelopments.When they left Shurgard in 2005, they became involved invarious other businesses, during the “no competition” period towhich they had agreed. Michael comments, “Being active inother businesses taught me one thing: I really like self storage,it’s a great business and there is a tremendous potential forgrowth at this time in Europe.”Convinced of this opportunity and with the backing of his oldpartners, Åke and Patrick, Michael founded SelStor at the end of2006 to develop high-quality self storage centres in greaterStockholm. Very quickly, Carl A. Ameln, who studied withMichael in Seattle and founded City Self-Storage upon returningto Europe, joined SelStor, making it one of the most experiencedself storage teams in Europe. “It’s great to be on the same sideas Michael again, after having been competing throughoutScandinavia for many years. SelStor is off to a great start,” saidCarl.SelStor’s first store in Åkersberga, north of Stockholm, fronts amajor road, but offers easy and well-situated access from aparallel road. Björn Zandin, head of construction at SelStor,comments, “We got a lot of support from the local authorities,much more than I would have expected in my former life as adeveloper for the two biggest hamburger chains in Sweden.”SelStor aims to offer its customers a convenient and highlysecure storage solution. The store in Åkersberga includesseveral “firsts” for the Swedish self storage market, withindividual motion sensors on all units and an electrified fencearound the whole property. “We talked to several cardealerships, and they have not had any break-ins since puttingup electrified fences, so we felt that the additional investmentwould offer our customers more security.”

Michael assembled a strong operations team to start up inÅkersberga. Mats Steijner, a former Operation Manager at CitySelf-Storage, heads up a small team, with the always smilingRebecca Lagerberg as Store Manager. Rebecca says, “Myexperience managing fast-moving consumer goods really helpsme to understand the needs and expectations of our customers.”Mats’ and Michael’s focus on marketing has been driving allactivities around the opening of the new store, with a campaignaimed at the local community offering special move-in deals,or free merchandising when moving in. The website(selfstorage.se) was redesigned to become more customerfocused. The construction of a second store has already started. Itoccupies a landmark location, right opposite the entrance toBromma Airport (the city airport close to the centre of Stockholm)and is surrounded by major commercial developments. Theproject was substantially larger than that required for a selfstorage centre and required a creative approach. As Michaelputs it, “Bromma is a site that you can only develop when youhave people behind you who are prepared to think outside ofthe box, and who see the possibility of creating value whereothers see problems. We dealt with all the issues, demolishedthe existing structures and obtained a building permit for a greatstore. We also managed to sell off part of the land, therebyreducing our investment costs substantially.”In 2008, SelStor obtained a further 175m SEK in funding fromSmedvig Capital, a London-based private equity company, thathad already invested in another business in which Michael,Patrick and Carl are co-investors. Robert Toms, ManagingDirector of Smedvig Capital comments, “We are always lookingto back great management teams in businesses with strongdevelopment potential. Self storage is in a very early stage inEurope and we see SelStor developing into a major player.”Very active in the self storage field, Michael also co-foundedFEDESSA and continues to serve as a Director. “I stronglybelieve that active involvement in FEDESSA improves theopportunities for all members of the Association, and that as abusiness, we can define the industry and set the expectations ofour customers.”

SelStor Self Storage

SelStor’s store in Åkersberga

33137 Europe:Layout 1 16/10/08 17:21

The Swedish self storage company Humlans Minilager AB,based in Gothenburg, was nominated in September for“Building of the Year” in the city of Trollhattan. During 2007Humlans Minilager completed the first phase of their three-storey, mini-warehouse project with a net rentable area of4,500 m2. The facility enjoys a prime location in Trollhattan,the home town of SAAB cars. The award jury’s statementincluded: “This is an excellent model of how an uncomplicated,industrial building can be built with a distinct architectural style,while making use of an exposed position in a striking way.”

Another unique quality of this building, besides its impressivedesign, is the heating system. Deep holes are drilled into theground rock to provide most of the heating (and cooling)required for the building. The storage units and Site Manager’soffice are heated via numerous pipes embedded in the concretefloors. Carl Waern, Managing Director, says that it is anecological way of running a self storage building, which alsoreduces electricity usage to a minimum. Of course, it meant alarger investment at the outset, but it will pay off in the long run.

Humlans Minilager means “Bumble-bee self storage” in Swedishand the company was named by chance in 1988, when CarlWaern started the first site in Helsingborg.

Carl is considered a pioneer inSweden; he came across selfstorage when he visited the USAon a sales trip for a Swedishexport trading company.Humlans now has six facilitieslocated in western Sweden. Apartfrom sites in Trollhattan andHelsingborg, Humlans has selfstorage facilities in Gothenburg, Kungsbacka, Uddevalla andKungalv. The Kungalv site is the only conversion in the Humlansgroup; the building was originally designed and used forsuitcase manufacturing. This storage facility opened in Marchthis year.

When all six sites are fully developed, the total rentable area will

be over 17,000 m2. The company has adopted the philosophythat it must be possible to reach all of their facilities by car, in oneday. This makes it easier to move staff temporarily from one siteto another, if required due to sickness, holidays, etc. The twosmallest facilities are run as “satellites”, which means that thereare no site managers available. For these two facilities allcustomer contact, documentation, contracts and so forth arehandled by post, e-mail and telephone, or the customer visits amanned facility. This arrangement, although not ideal, is costeffective and it gives Humlans a reasonable profit, which is anincentive to keep the “satellites” in the group.

The company’s first storage facility was designed and built in aSwedish fashion in 1988. After that the company started usingbuilding materials from the USA and the interior design becameinternational. Recently, Humlans also began using Europeansuppliers of doors, partitions, etc. However, so far theconstruction contractors have always been Swedish companies.

The five people who own Humlans Minilager AB, founded thecompany in 1997. As well as Carl Waern, Kalle Gillholm is anactive partner who is responsible for operations. He has takenover shares from his father, Lars Gillholm, who is still employedwithin the group.

The other three owners aresleeping partners, but they arevery much involved with thecompany as board members.The company’s financial targetsare an organic, minimum growthof 10% yearly and a minimumreturn on capital of 13%. So far,Humlans Minilager has managed

to achieve these targets most years.

The company also intends to grow at the rate of one new facilityevery two or three years. “From a market perspective, this ismore than feasible as Swedish self storage is still in nurseryschool,” says Carl Waern, Humlans Minilager’s ManagingDirector.

10

COMPANY FEATURE Self Storage Europe

Swedish Self Storage Operator Nominated for Architectural Award

“This is an excellent model of how anuncomplicated, industrial building can

be built with a distinct architectural style,while making use of an exposed

position in a striking way.”

Front & Side View of the “Building of the Year”

33137 Europe:Layout 1 16/10/08 17:21

11

COUNTRY FEATUREVolume 4, 2008

KeySpace recently launched Russia’s first self storage operationin Moscow. Management consists of a mixture of those from aself storage background, learning to run the business in anemerging economy, and those experienced in establishing first-movers, but new to self storage. However, it is fair to say that itwas and continues to be quite an adventure for all concerned!Russia is a country of some 140 million people, approximatelyten million of whom live in Moscow. The country’s second city,St. Petersburg (temporarily renamed Leningrad during soviettimes), has a population of approximately five million and thereare eight further cities in Russia with populations in excess of amillion.Western media provides many images of modern Russia, someaccurate and some rather less so. Clearly, there have beenenormous changes over the last two decades; the crumblingeconomy of a hardcore communist regime eventually collapsed,which forced change and led to a new era of “wild east”capitalism in which a very few individuals profited massively.However, this has been succeeded by a far more stable andequitable environment, bringing with it a huge amount of “trickledown”. There is still a vast amount of money in private hands,but it is spread over many more than the small handful of“oligarchs” of the Yeltsin days. There remains a great deal ofpoverty too, but there is also now a middle class with money tospend.

This is evident not only in Russia itself, but also in holiday resortsand property markets around the world. The accompanyingconsumer boom continues to be fuelled by revenues from high-priced energy exports, with much of that revenue finding its wayinto an expanding diversified economy. For this and a numberof other reasons, Russia presents an interesting opportunity forself storage.Unfortunately, that opportunity comes with some significanthurdles and, running through all of them, is a crippling level ofbureaucracy. Far from being a hangover from soviet days, as isoften assumed, stifling bureaucracy has been an endemic partof Russian life for centuries and there appears to be no real willto change that. Even the simplest things require considerable paperwork and theinvolvement of a number of parties. For example, the purchaseby a company of something relatively minor, such as a desktopPC, requires contracts to be drawn up between buyer andsupplier, and then presented to the bank for endorsement beforefunds can be transferred. All areas, financial or otherwise, areintertwined in a web of inter-dependent paperwork, with onesmall error in documentation capable of bringing things to ahalt in numerous departments. Interaction with governmentdepartments is extensive and there can be long delays,

...continued on Page 12

Self Storage in Russia

William Oswald, KeySpace CEO andRodney Walker, Sec Gen FEDESSA

33137 Europe:Layout 1 16/10/08 17:21

COUNTRY FEATURE Self Storage Europe

with no quarter given by one authority when things are held upby another.

This can cause significant problems with work permits, registeredoffice applications, lease contracts or ownership titles andcompany secretarial documents become entangled in anenormous game of “bureaucratic twister”! Consequently,accounts departments in Russian companies spend a great dealmore time on documentation than they do on actual accountingand things tend to happen slowly.

All that said, it is possible to work through the bureaucracy withplanning, patience and attention to detail. However, first-moversare never easy anyway and the added complications do nothelp. Along with entering an unknown market, KeySpace alsofaced the problem that there were no local self storage industrysuppliers in Russia.

An initial investigation into the potential for importing mezzanineflooring and unit fit-out from outside Russia quickly showed thatthis was not a viable option. Importing such items would notonly be extremely expensive, but it would also involve complexand lengthy procedures, with no guarantees of success.

Furthermore, the materials approved by Russian fire marshalsare different to those approved in the West, and vice versa. Thisis not a case of standards being higher or lower in either place;they are simply different. Therefore, KeySpace had to create itsown mezzanine flooring systems and fit-out locally. This took aconsiderable amount of time and effort, but at least it hasresulted in security of supply, with that entry barrier left in placefor others.

Meanwhile, management software had to be adapted. Firstly, itnot only has to be in a different language, but also in Cyrillic,rather than the Latin alphabet. Secondly, Russian tradingregulations are very different to those in the West, with strict rulesrelating to the order in which goods or services are provided,payment is made and related documentation is processed.

This software then had to be integrated with security systems.KeySpace avoided the temptation to take a low-cost approachas a first-mover, making the decision to go top of the rangestraight away, with keypad-operated, individual, movement-sensor alarms on units and movement-sensor activated camerasin common areas.

Along with testing the market, KeySpace had to field trial thesemezzanine, fit-out, management and security systems. It hasdone so with a pilot facility and, to the relief of all concerned, themarket proved strong and the systems all passed with flyingcolours. KeySpace was also able to glean valuable informationin a number of areas, including client profile, best marketingroutes and pricing.

KeySpace is now about to roll out a multi-facility operation.Doing so will be as challenging as we hope it will be fruitful.Getting this far has required industry-specific expertise,combined with experience in doing first-movers, local Russianknowledge, determination and a strong sense of humour! Wewill need all of those going forward, but we are all excited aboutthe future.

William Oswald, CEOwww.keyspace.ru

Inside the KeySpace Building

The Loading Bay and Reception

KeySpace’s Store Rooms

William Oswald Opening a 1 m2 Locker

12

33137 Europe:Layout 1 16/10/08 17:21

13


The Norwegian Self Storage Association

The Norwegian Self Storage Company Selvbetjeningslageretwas founded in Bergen in 2002. It started with a small selfstorage facility in Sandviken, a couple of kilometres from the citycentre. Originally, there were 56 storage units, but later it wasexpanded to 114 units. At the time there was a lack of demandfor commercial property, which was the reason that self storagewas considered. Also a friend from the USA explained all aboutself storage, which led to the idea of building storage units in avacant building. Because the demand for storage space washigher than expected, it soon became apparent that more spacewas required.

A second self storage facility was developed in the old Hansabrewery. This is a historical place in Bergen, where somedecades ago they brewed the local beer.

...continued on Page 14

Selvbetjeningslageret -Norwegian Self Storage Company

The First Storage Site at Sandviken

The Norwegian Self Storage Industry began in Oslo in 1993with the opening of the Mini Lageret Self Storage Company,which became City Self-Storage (CSS) in 2002.CSS is one of several companies in Norway that has one toeleven sites spread across the country, mostly in the large cities.Although the Norwegian market has been affected by thedecline in the real estate industry, there is still overall growth thisyear. However, there is a clear need for stronger cooperationwithin the industry in Norway, with focus on increasing marketknowledge and on our own professionalism.As a consequence, earlier this year three companies establishedthe Norwegian Self Storage Association, which is a member ofFEDESSA.The members of the board are:Nils Øyvind Hillestad, Chairman (City Self-Storage)Lars Skurtveit, Cashier (Selvbetjeningslageret)Lasse Høydal, Secretary (Eurobox)Carl August Ameln, Board Member (Eurobox).The Association is in the process of inviting the rest of theNorwegian Self Storage Industry to join and it is hoped thatmany companies will be members before the end of 2008.We have adopted the FEDESSA standard rules and we intend towork hard to ensure that the Norwegian Association is asprofessional as the Associations in other European countries.Our main areas of focus will be:

• to raise industry awareness• to raise standards within the industry• to lobby and liaise, when necessary• to support our members.

We also need to make sure that we maintain high levels ofcommunication with and between our members, so that allparticipating companies know that we are supporting them andour industry. We have some challenges with bad debtors and some issueswith insurance in Norway; but with hard work we will establish

some practical industry standards that will benefit all of ourmembers.We wish to thank Rodney Walker and Chris Johns for their helpand for supporting us in becoming members of FEDESSA.

Profile - Nils Øyvind HillestadNils Hillestad has been with CitySelf-Storage (CSS) since August,2007 and before that he wasGeneral Manager for three yearswith Pan Vision, a company in themulti-media industry.

From his experience as a memberof the board of the Multi-mediaSociety, Nils realised that all ofthe society’s members benefited

when it came to working with government, and with issues ofprofessionalism and the market in general.

He has 16 years background in logistics with DHL andTollpost Globe, and as a result he sees himself as a well-rounded and experienced person with a passion for what heis doing.

Nils is aware of the tasks and the obstacles that must besurmounted and he will certainly listen to the advice offeredby experienced people within the industry. He is, however,confident that he and his colleagues will see the Norwegianmarket expanding in the years to come.

The Norwegian Self Storage Association will, of course,primarily support its Norwegian members, but they also verymuch look forward to participating more actively in FEDESSAas opportunities arise.

Nils, who is 45 years old, is married and has three childrenand a dog.

Nils Øyvind Hillestad

33137 Europe:Layout 1 16/10/08 17:21

14


Now the area has apartments, a restaurant and a conveniencestore, as well as a self storage facility. The Hansa area is closeto the city centre, and seems to be an attractive place for peoplewho are looking for storage space. In Hansagaarden there are194 storage units, on two floors. It was felt that the businesswould grow with the storage facility located in Hansa. At the outset, it was not clear how big the market for self storagewas in Bergen, as Norway is a country where traditionally peoplehave stored their goods in their attics and garages. With apopulation of only 4.7 million people, Norway is not the mostoverpopulated country in Europe. How much storage spacecould be rented out, was not really known.However, the demand for storage space kept on growing aspeople heard about Selvbetjeningslageret. Adverts were placedin the local paper and the company was featured on the radio.Soon the units in Hansa were rented out much quicker thanexpected, which showed that the demand for storage space wasmuch greater than anticipated.The latest development is a 4,100 m2 self storage facility atMidtun; this is by far the biggest project to date. During the firststage of the building project, 3,000 m2 was allocated to selfstorage units and the rest comprised offices for rent. The officerentals helped to give the self storage side of the business aboost, by ensuring a steady income every month during the start-up phase. However, the demand for self storage units has grownyear on year and our goal is to become the largest and best self storage provider on the west coast of Norway.

In recent years self storage sites have started to appear aroundthe country, mostly in the southern region, where the largest citiesare situated. People are becoming more used to the idea of selfstorage. But, the question, “How did you come up with the selfstorage idea?” is still asked by customers who are not awarethat this has been a popular way to store goods in America formany decades. Self storage in Norway is going to grow in thenext years, as people become more aware of this “newbusiness”. The coming years will be of great interest, particularlywith the current financial crises around the world, which, as yet,have had little influence on business in Norway. In January 2007 Michael Fogelberg said that he knew of severalNorwegian self storage companies that wanted to set up a SelfStorage Association in Norway.Michael provided contact information for Jeremy Dunn (CitySelf-Storage) and Carl Ameln (Eurobox Minilager) and afterdiscussions with these companies the Association ball startedrolling. Soon after Nils Øyvind Hillestad, the General Managerof City Self-Storage Norway, became involved and subsequentlya meeting was set up between the three storage companies. At a meeting in Oslo, in December 2007, a joint decision wasmade to start up the Norwegian Self Storage Association. Thestatutes were laid down and the Association applied formembership of FEDESSA. Other Self Storage companies arenow being invited to join the Norwegian Self Storage Associationand it is hoped that many will do so in the coming months.

33137 Europe:Layout 1 16/10/08 17:21

15


City Self-Storage, the third biggest operator in continentalEurope, continues its strategy of expansion and growth byopening a new self storage facility in Prague, in the CzechRepublic.

The new site, at Dejvice, is the first purpose-built, self storagefacility in Prague and it provides a total space of 2,782 m2, witha possible 600 units ranging from 1 m2 to 30 m2. This facilitywas constructed by the Selvaag Group, the Norwegian parentcompany which owns City Self-Storage. As a purpose-builtfacility, it has all the advantages that are appreciated by selfstorage customers, such as a spacious loading area, big lifts,high security standards and a handy shop with a wide range ofretail products. The Dejvice site is situated in a prime location in Prague on themain road leading to the airport. Its great visibility andimpressive signage have helped to ensure a really successfullaunch for the facility. After only three months in business, thesite team has successfully rented out over 100 units. It is typical

in the central European markets that companies managethrough various strategies to attract approximately 50% of theircustomers. However, casual customers have shown a great deal of interestin the new self storage service at the Dejvice site. This is rathersurprising and very satisfying, especially in the Czech Republicwhere the population has been rather ambivalent to this newservice and the growth of self storage businesses was typicallymuch slower than in western European countries. On the 4th of September, City Self-Storage officially opened itsnew site at Dejvice. There were over one hundred guests

(representatives from Norway, local authorities, other operators,customers and the press). It was a great event and a goodopportunity to introduce City Self-Storage and the Selvaag

Group, as well as their range of services. The occasion createdmuch interest from the local media and it generated severalnewspaper articles, which is of course very helpful for creatingawareness about our self storage service in this under-developedmarket in Prague.

City Self-Storage opens new site in Prague

(From left to right): Lenka Bayman (Selvaag Bohemia Building a.s.), Karsten Bomann Jonsen (Selvaag Gruppen),

Per Bomann Larsen (Selvaag Eiendom – Investor), ToneWicklund-Hansen (CEO City Self-Storage), Václav Širl

(Deputy Mayor of Metropolitan District, Prague 6), Soňa Fialová (GM City Self-Storage CR), Gunnar

Frederik Selvaag (Owner – Selvaag Self Storage AS).

The City Self-Storage Building in Prague

Some of the Guests Enjoying the Buffet

A Typical City Self-Storage Store Room

The new site, at Dejvice, is the firstpurpose-built, storage facility in Prague...

33137 Europe:Layout 1 16/10/08 17:21

16


Self storage started in Ireland in the late1980s when DesRodgers opened Easi-Mini Storage in a former bicycle factory inthe Dublin Docks area. Des had come across the concept whileworking in Canada and his units were constructed with woodendoors and block walls. Des went on to diversify into wastedisposal, computer tape storage, archive storage and eventuallyhe sold his business to a large record storage company.

In 1989 The Storage Centre was opened by the O’Meara familyin an 84,000 sq. ft. premises in central Dublin. It was the firststorage facility in Ireland to adopt the now familiar style of steelpartitioning and was constructed by Philip Kirk, who representedLeslie Steel of the USA. A second storage facility was opened in1996, in a former hospital.

Storage is one of several businesses started by the O’Mearafamily. The first business, O’Meara Camping, was started byRory O’Meara in London in 1958 and this year it celebrates its50th Anniversary. O’Meara Camping still thrives today underthe ownership of Martin O’Meara, a cousin of the foundingentrepreneur, Rory.

Other businesses started by the O’Mearas include the BusinessIncubation Centres, Richmond Business Campus, OssoryBusiness Park, O’Meara Holidays and of course Elephant SelfStorage. Over the course of 50 years the assorted companiescatered for many thousands of clients, from the general publicto a Prime Minister, various banks, multi-nationals, numerousstart-ups and hospitals. O’Meara businesses provided officesfor the two largest engineering construction projects ever inIreland, the Luas Light Railway System and the Port Tunnel. Also,Aldi started in the Business Incubation Centre before openingall over Ireland.

Elephant Self Storage, which is managed by Jude O’Meara,opened in 2005 and today it offers 800 rooms in a 60,000 sq.ft., ultra-modern, storage facility spread over four floors. Thefacility was developed in three phases and, apart from all thenormal services such as individual access codes, a packagingshop, a trolley bay, large lifts, covered loading bays, etc., it hasgone a few steps further. There are more than 80 CCTVcameras, with 24-hour seven day a week live monitoring,

perimeter alarms and seven layers of “high-tech” security.

Elephant’s catch phrase is “The Hotel for your Goods”. TheElephant facility ethos reflects the hotel-like atmosphere.

The facility is managed by a team of five: Marius is responsiblefor Building Management and Client Administration, Joannelooks after Sales and Customer Service, John O’Riordan looksafter Finance and Construction Design. Tom O’Meara is themost recent recruit and Jude O’Meara is the General Manager.Jude’s parents, Kay and Rory, act as mentors.

The future for this entrepreneurial-based business is exciting. Ithas a healthy level of occupancy, a growing client base and asecond facility is already in the pipeline. Today, Elephant isproud of its reputation, which is based on 50 years of providingbusiness services to clients, world wide.

One of the things Jude loves about the business is the Elephantname. Elephants don’t forget; people don’t forget Elephant SelfStorage.

In the current financial climate, it is comforting that the €10million invested in Elephant Self Storage is not borrowed andthat their customers have the comfort of knowing that the selfstorage facility where they place their goods is financially secure.

Self Storage in Ireland

Christmas at Elephant Self Storage

Elephant’s Reception Area

Elephant Self Storage’s 60,000 sq. ft., Ultra-modern Facility in Dublin

33137 Europe:Layout 1 16/10/08 17:21

17


Profile - Jude O’Meara, Elephant Self Storage

When she was 14, Jude O’Meara was introduced toentrepreneurship when her mother, Kay, suggested providing acoffee/tea service to clients at the family-owned complex,Ossory Business Park. In those days they had over 300 clientsfrom start-up businesses, providing everything from an ironingservice, to Barclays Bank, who stored their archives in theirfamily’s storage facility. That experience taught her a lot aboutbusiness, buying paper cups, selling coffee and tea, talking tocustomers, and once even dealing with a very serious flood.

Mum, Dad, brother Tom and Jude were never very far removedfrom business. They travelled all over Europe during thesummer holidays, supervising the ten O’Meara campingholiday sites where the family ran packaged camping holidays.They flew to Spain on the chartered planes they rented to flytheir clients to camping holidays in places like Estepona, nearMalaga, and to sites near Barcelona.

Later on, when her parents opened two Business IncubationCentres (BICs), she saw a different side of business. Incubationis a fascinating concept, which her father studied in the USAwhere the National Business Incubation Association (NBIA)provides training for government and development agenciesabout giving support, training and inspiration to start-upbusinesses. Their BIC was unique as it was a “for profit”incubator, rather than one funded by government. This meantthat it had to run as a business by itself. It was highly successfuland was eventually used as a role model at one of the NBIAconferences in the USA.

Jude helped out her parents during the “Dot Com” years, whentheir BIC had numerous computer-related businesses, allseeking “gold”. Her father often said that their businessreminded him of the stories he heard about how the realmoney in the Klondike Gold Rush was made, not by the miners,but by the businesses selling wheel barrows. They providedthe infrastructure (wheel barrows) to the seekers of computer“gold”.

They eventually sold their BIC to concentrate on self storage.Today Elephant Self Storage is the end product of thosediversified businesses.

Jude’s job is interesting and varied. She deals with facilitymanagement, customer relations, team motivation,advertising, website design, security matters, buying for theirweb shop, and a hundred other jobs.

She has attended self storage conferences in the USA, UK andthroughout Europe, as well as taking self storage courses inLas Vegas, and marketing, sales and advertising courses inIreland.

Before joining the family firm, Jude worked in Storage WorldManchester for Andrew Donaldson and Paul Fahey (who nowrun BiG Storage). Under their guidance she gained pricelessexperience, for which she thanks Paul, Andrew and SalesManager, Kevin Murphy. Storage World was a massive facilityoperated by dynamic businessmen.

One aspect of self storage that Jude did not always appreciatewas how male-orientated she felt the business was. For fiveyears after leaving school, she studied nursing where an holisticapproach was taken with “customers”. Self storage seemedto her to be very commercial/industrial in its ethos. For thisreason she tried to make Elephant Self Storage more feminine,comfortable and friendly.

Elephant has a policy of giving to charity and each Christmasthey make several donations based on the referrals they havereceived during the year. This year they made donations to achildren’s hospital, to a local homeless advice centre and to ahomeless charity. Jude will soon be heading off to Lesotho,South Africa, to help build schools for the many orphans whoseparents have died of AIDS. Some of Elephant’s self storagecustomers have supported her in her efforts to raise the €5,000required to participate in this event.

With guidance from Rodney Walker, an Irish Self StorageAssociation has been founded. Currently, Jude is Treasurer ofThe Irish Self Storage Association (ISSA). Colm Hefferon ofNeed More Space is Chairman, David Hickey of Limerick SelfStorage is Secretary and the Vice Chairmen of the Associationare George Bulman of Mini Storage and Philip Govern of U Store. The Association is a member of FEDESSA.

If you would like to link with Elephant Self Storage,please e-mail Jude at: [email protected]

Jude O’Meara at her Facility in Dublin

Jude O’Meara with her Parents, Kay and Rory

33137 Europe:Layout 1 16/10/08 17:21

18

COMPANY FEATURE Self Storage Europe

French self storage operator Une Pièce en Plus (UPEP), whichwas founded by Frederic Vecchioli in 1998 and first traded fromtwo sites in Paris, recently celebrated its 10th anniversary.

Une Pièce en Plus grew to four sites within its first three years oftrading, then it was bought by Mentmore in 2001. Mentmorepreviously operated in the United Kingdom under the Spacesbrand, which at the time was one of the leading British selfstorage companies. After the acquisition of Mentmore plc in2004, UPEP became part of the Safestore Group.

2005 saw further significant growth when UPEP acquired thestores owned by Access France, the second largest French selfstorage operator, in terms of number of stores. After the disposalof seven non-core sites, ten stores remained operating underthe “Access” brand. All of the Access stores were subsequentlyre-branded “UPEP” the following year.

Une Pièce en Plus has now become the largest self storageoperator in Paris. UPEP has 21 sites with more than 10,000customers and two more stores are due to open in 2009.

Self Storage in France

The French self storage industry began to develop after the UKmarket was established, with the first signs of activity starting inthe early 1990s.

The industry has since grown steadily and there areapproximately 155 storage facilities with almost half of themlocated in the greater Paris area. Lyon, Toulouse, Marseille andNice are also “hot spots” for self storage in France. Of theknown storage facilities, 74% of the stores are run by the topthree operators.

Looking at France’s population of 61m in total, this equates toa head count of approximately 400,000 per storage facility(83,000 per facility in the UK). The highest penetration isachieved in central Paris with 114,000 inhabitants per facility(39,000 per facility in greater London).

It is believed that the factors driving the growth of the self storageindustry in France, which will grow at an annual rate ofapproximately 15%, are broadly similar to the UK self storagemarket.

Une Pièce en Plus – Ten years ofself storage a la carte

Of the known (French) storage facilities,74% of the stores are run

by the top three operators.

...the self storage industry in France, ...will grow at an annual rate of

approximately 15%...

33137 Europe:Layout 1 16/10/08 17:21

19


Vilis Vitols, the first self storage operator in the Baltic countries,has opened his second VIP Self Storage site in Riga, Latvia. Thesite started trading in June this year and the demand for storagehas been above expectations, due to the site’s excellent locationnext to a busy car-inspection site.

The building’s footprint is 600 m2, however, that has nearly beendoubled with a mezzanine floor and the site also has thepotential to construct another building with 3,000 m2 of storagespace.

The unusually low entrance at the Riga site was resolved by anelegant construction solution. The drive-in area was made lowerthan the floor of the storage area, which means that the distancethat goods must be raised or lowered when loading orunloading is decreased; this unique feature actually makesloading and unloading much easier!

Both the partitioning and the mezzanine floor were supplied bySteel Storage of London, who also supplied the labour. Thegoods lift, access control and CCTV were supplied by localcompanies and Vilis chose Store-IT’s administrative software,with which he is very happy.

In addition, Vilis has recently bought a third building on the otherside of Riga, which he is now busy refurbishing. The building hasa wing with 1,530 m2 of office space and a 1,600 m2

warehouse, which fortunately is high enough to accommodatea mezzanine floor to double the available space.

Like many other European countries, the Latvian economy is inrecession, but Vilis’s success proves the age-old maxim that selfstorage is a recession-proof business.

Written by: Tuomas Kurittu

VIP Storage grows quickly in Latvia

Vilis Vitols and the VIP Self Storage Signage

The Goods Lift and Storage Lockers

The New Building at Riga, Latvia

The Unique VIP Self Storage Loading Bay

...Vilis’s success proves the age-old maximthat self storage is a recession-proof

business.

33137 Europe:Layout 1 16/10/08 17:21

33137 europe:layout 1 16/10/08 17:21 page 1 · welcome to the fourth and final edition of self...

Documents