07: Building Hong Kong's Biggest Self Storage Business
By Sam Marks / Johnny FD
Kevin Shee went from jobless to building one of Asia's largest private self storages business's in 15 years. SC Storage now is the largest Self Storage company in Hong Kong and expanding rapidly into new markets. Kevin & Sam discuss the financial wizardry behind the business model, the joint venture they co-own in Hong Kong, and investing in US and Asia storage REITs for great yields and recession proof earnings. Relevant links for guest: Kevin on Facebook Kevin on LinkedIn Kevin’s business SC Storage Where are we: Kevin – Hong Kong Sam – Singapore Johnny – Lisbon What we are drinking: Sam – Hibiki Harmony Master Selection Recommended (books, subscriptions): Book: The Richest Man in Babylon Discussed (relevant links): MapleTree REITs Public Storage Extra Space Time Stamp – Topic: 10:22 – How Kevin become the Father of Self Storage? 12:45 – Spotting the opportunity in self storage 14:45 – SC Storage market share in Hong Kong 16:10 – Is Self Storage recession proof? 17:10 – Playing the property market in Hong Kong 17:55 – Typical size of an SC Storage location 18:10 – My investment with SC Storage 20:00 – Leveraging debt to maximize return on capital 21:25 – Getting loans from banks 24:20 – Competition leeching on corporate strategy 26:15 – SC Storage in acquisitions 26:55 – SC storage expansion into new markets 28:20 – The growth in storage internationally 28:55 – Breakeven point in operating a storage premise 29:30 – The network effect of more locations 30:15 – Potential exit strategy considerations 31:00 – Micro-markets, the next opportunity 33:15 – Investments in REITs 35:15 – REITs in a recession 37:30 – REIT markets USA vs. SG 41:00 – How to invest in Storage REITs 44:20 – Big Data in storage businesses 46:00 – Sam’s investments in REITs 47:50 – Kevin’s investment strategy 49:10 – Investing with reputable people 51:30 – How Kevin gets deals under market value 53:00 – Find out more details on Kevin and SC Storage If you enjoyed this episode, do us a favor and share it! Also if you haven’t already, please take a minute to leave us a 5 star review on iTunes and claim your bonus here! Copyright 2016. All rights reserved. Read our disclaimer here.