Haddington head-quartered Kangaroo Self Storage is set to expand its Glasgow self-storage unit with funding from HSBC as demand continues to grow.
The new facility also allows for investment in its Dundee storage site and puts the building blocks in place for new storage developments.
The £3.8m funding from the bank will help enable Kangaroo Self Storage to create additional units at the existing Glasgow site. The storage centre has a 35,000 sq ft footprint currently housing 588 storage rooms and will expand by an additional 355 rooms with work set to commence this year.
Chris Stevens, Managing Director at Kangaroo Self Storage, said: “It’s a really exciting time for us as we embark on the development of the Glasgow site. As a result of a difficult property market during the recession, we’ve seen increased demand across all the sectors; with the number of householders moving back home to live with their parents, businesses taking advantage of the flexibility of our storage space in uncertain times and students increasingly using storage rooms over the summer holidays.
“As a result of this increased demand for our units and the improving economy, we needed comprehensive funding that would support developments and also reach an increasingly aware customer base. HSBC had the expertise in the sector to advise on our planned growth but also the willingness to support our development.”
Andrew Little, Head of Business Banking in Scotland, said: “Kangaroo Self Storage demonstrated serious growth aspirations and we were pleased to support their growth ambitions and business strategy. They are a great example of a well-run business in the rapidly expanding self-storage market. We’re expecting to see more acquisitions of development sites and organic growth from unit extensions in this sector.”
The finance was allocated from HSBC’s national £10 billion SME fund to actively support UK SMEs. £450 million is specifically designated to support Scottish firms and rebalance the economy outside of London.