Hong Kong-based Storefriendly opens first outlet in Singapore
By Venus Hew | Posted: 09 December 2011 2217 hrs
SINGAPORE : As the average apartment size in Singapore shrinks so does the space people have to keep their stuff.
The trend is attracting a new wave of companies that rent out storage space.
Hong Kong-based Storefriendly opened its first franchised outlet in Singapore on Friday.
It aims to have 25 operating across the country by 2014.
Jes Johansen, Managing Director at Storefriendly, said: "We believe that Singapore is ripe in that apartment size is getting smaller. People consistently accumulate a lot of things, they want to have access to them and we believe with the small storage conveniently located, air conditioned, they will make use of that, they will appreciate that product right in their neighbourhood.
Storefriendly's 12,500 square foot outlet at Bukit Batok comprises about 300 secure lockers.
They will cost between 88 and 888 dollars per month to rent, depending on the size.
The company says it has the largest network in Asia, with 90 branches through Hong Kong, China and Macau.
It opens a new franchise on average every month, and this year its revenue jumped 50 percent to S$60 million.
The top four existing operators in Singapore control the majority of the industry's approximately 17,000 storage units or one million square feet of net lettable area.
With a population of 5 million in Singapore, Storefriendly says that will translate into an industry penetration of 0.25 square feet of self-storage space per person or one storage unit per 250th person.
By contrast, the penetration in more developed markets is above one square foot per person or about 80 people per storage unit.
Singapore therefore has the capacity for further organic growth in the self-storage industry.
Another industry player, Lock and Store says consumer demand in Singapore is growing 5 percent a year, in view of the smaller properties being built.
- CNA/ch
- wong chee tat :)
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