Holiday Island Holdings Inc. (HIHI), a firm specializing in the acquisition, development and management of commercial, recreational and residential real estate, intends to enter the self-storage industry by acquiring an 80 percent interest in Houston-based U Storage USA for about $1.2 million. U Storage operates one facility with another in the planning stages. HIHI plans to grow the brand through “future acquisitions and affiliations,” according to a press release.
“While we ramp up our acquisition search for more self-storage properties, we think it prudent to have the Houston owner/developer remain in a partial ownership position on transactions they generate, and on rolling out our newly acquired U Storage USA brand,” company officials said.
HIHI views self-storage as a “relatively low failure risk” venture and believes there are several favorable factors driving the market, including low operating costs per square foot, increased demand from remote workers, an influx of relocations, and sales growth in recreational equipment and vehicles.
“While we are seeking out and are in preliminary analysis of various remote-living and recreational projects and prospects, we are simultaneously finding a significant number of nearby, independently owned and non-branded self-storage properties,” said S. Gene Thompson, CEO.
Based in Holiday Island, Ark., HIHI is active in Arkansas, Louisiana, Oklahoma and Texas. The company is managed by a senior group of real estate and business executives, and aided by financial advisers with background in recreational and residential development, according to its website.
Source:
StreetInsider.com, Holiday Island Holdings Inc. Announces Agreement to Acquire Self-Storage Property and Brand for $1,185,000
