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contents

• focus on…Jos Collin . . . . . . . . . .3

FEDESSA News . . . . . . . . . . . .4 to 6

• La 6ª Conferencia Española

• Spanish Self Storage Conference

• European Small Business Portal

• Shurgard Europe acquisition

• IT-Toolkit for public buildings

• Mortgage protection for consumers

• SME Envoys appointed

• New buildings need energy certificate

Insurance Feature . . . . . . . . . .7 & 8

• Customers’ Goods Insurance

Country Feature . . . . . . . . . .9 & 11

• Self storage in Portugal

Company Features . . . . . . .12 to 18

• BigBox – newcomer in Portugal

• Bluespace Acquisition

• Storage World invests €3m

• Espazo Plus Self Storage

Late News . . . . . . . . . . . . . . . . . .19

• AESS and ACN

• FEDESSA’s LinkedIn Group

• Social networking and the AESS

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

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

Tel: + 44 (0)1270 623 150Fax: + 44 (0)1270 623 471

e-mail: admin@ssauk.com

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: sjmck@estontrg.com

The SSA UK and FEDESSA, or any of itsagents/representatives/staff, cannot accept any legal

liability for the accuracy of the news items and articlescontained in the magazine, which have been obtained

and are reproduced in good faith.

AdvertisingPlease contact Stan McKerron:

48 Talbot Way, Stapeley, Nantwich, CW5 7RQ.Tel: + 44 (0)1270 624 622e-mail: sjmck@estontrg.com

When they think of sun and sea,most Europeans think about theIberian Peninsula. Vilamoura in Portugal made the pointadmirably turning out as it didto be an excellent venue for this year’s highly successfulEuropean Conference andTrade Show; sun, sea, fun anda great show, all in abundance. In order to emphasise thatsuccess, a separate 2011conference insert has been

printed as a memento for those who were there, and to promote the event tothose thinking about attending next time; it is within this issue of the magazine. The AGM and Council meetings were also held during the conference. Thesemarked the end to Frank Boot’s two year term of office as President duringwhat, as we all know, has been a difficult economic period right across Europe.The Council members expressed their gratitude for the way he had managedto find the time to combine his extremely busy job at Shurgard with thePresidency and take the lead, as he has, over a number of issues. We aredelighted that he will be staying on the Council as the Belgian representative.A small presentation was made to him by Michael Fogelberg at the maindinner.Now Michael Fogelberg is our new President and we doubt that the challengesahead will be any easier for him! But, Michael is used to challenges, havingstudied in America; been part of the team that established Shurgard as aEuropean leader; set up his own company, Selstor, in Sweden; been a foundermember of both FEDESSA and the Swedish Self Storage Association (SSSA);taken on the role as SSSA’s President; and, now been elected President ofFEDESSA. With such experience, we can rest assured that we are in safe hands.Acknowledging the need to continue planning, the Council had to select asuitable candidate for Vice President (VP). Not surprisingly, the task was madeeasy when, following a proposal, Christian Schmutz (Zebrabox, Switzerland)currently FEDESSA’s Treasurer was unanimously elected VP.Other changes announced at the meetings see Jude O’Meara as theRepresentative for the Irish Self Storage Association, replacing Colm Hefferonwho is emigrating to Canada, and the imminent retirement of Jos Collin whoplayed a major role in setting up the vibrant Spanish Self Storage Association(AESS) as its President. In this issue, we have included as a thank you a “light-hearted” personal bio on Jos who, having sold his company, will continue asPresident until the autumn of 2011, while seeking pastures new. It is likely thathe will be replaced by Joaquin Izquierdo of Bluespace Self-Storage.Perhaps not surprisingly, we have chosen Portugal for our “Country Feature” inthis issue and we have included articles about the main Portuguese operators.Despite the relatively fast growth in Spain, the industry has been slow to takeoff in Portugal. However, we are hopeful that a Portuguese Self StorageAssociation is now on the radar, albeit a small blip, and that it will not be toolong before Portugal is represented within FEDESSA.Together with news items from the AESS and Company News from Spain, wealso include our usual titbits on legislation and news items from the rest ofEurope, which we hope all contribute to making this issue of Focus aninteresting read for everyone. Enjoy!

Tony RichmanFEDESSA European Representative

Sun, sea and self storage - a recipe for success

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PERSONAL PROFILEVolume 3, 2011

Jos CollinQuestions answered by Jos Collin - having sold his company to Bluespace in February,2011 we look behind the scenes at the man who created Reserva Self Storage in Barcelona.

What was your first job?I was a disc jockey at private parties for the “jet set” inAntwerp!

Where were you educated?I studied Latin Sciences at a Belgian boarding school andApplied Economics at Antwerp University. I also gainedan MBA at IESE Business School and I am proud of myCPL and IFR qualifications as an aircraft pilot.

What was the first car you owned?A grey Ford Escort Mark 1.

What about your family life?I am married to a beautiful Spanish lady and we have sixchildren aged between 6 and 15; so it’s impossible to getbored!

How old are you?I am 48 and still feeling very fit and creative.

When did you get involved with the self storagebusiness?I attended the 2001 European Self Storage Conference inBrussels.

What got you interested in the self storageindustry?Mainly the business model and opportunities fordevelopment in a relatively new market. I then went on tocreate the Reserva Self Storage company in Barcelona,which we sold to Bluespace in February this year.

When did your company join the AsociaciónEspañola de Self Storage (AESS)?Reserva was one of the founding members of the AESS in2004. I was the association’s first Secretary and itssecond President.

How long did you serve as President of the AESS?From 2006 until now; perhaps a bit too long.

What have you enjoyed most and what do you feelyou achieved with your company and theassociation?Financing, building and operating a state-of-the-art selfstorage facility. And, bringing the majority of professionalself storage operators in Spain into the AESS, holding fivesuccessful Spanish national conferences and developinga friendly and co-operative atmosphere throughout theindustry.

If you could start again, would you have doneanything different?I would have gone into the business with the samebusiness plan; but maybe with different partners!

Apart from family and work, what are your maininterests?Making music, flying aeroplanes, geocaching, readingand skiing.

What type of music do you like?Classical; the beautiful rather than the interesting type.

What’s your favourite book?The Achille Talon comic series.

What’s your favourite film?La Grande Vadrouille.

What’s your happiest memory?My first solo flight.

What is the most physically demanding thing youhave ever done?Military service!

What are the three things you dislike most?Spanish road signs, ignorance and settling for less.

And, three things you really admire?Holiness, Bach and the Internet.

What does the future hold for Jos Collin?I’ll be exploring new business ventures in other industries;so many opportunities, so little time.

How do you see the Spanish and European selfstorage industries in ten years’ time?In Spain, one or two large multi-sites, with professionalleaders, all foreign owned. A more balanced UK/continental equilibrium in the rest of Europe.

Finally, what can you say about the self storageindustry?It has been a real pleasure meeting and working with somany nice and interesting people in such a fantasticatmosphere!

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FEDESSA NEWSVolume 3, 2011

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FEDESSA NEWS Self Storage Europe

La 6ª Conferencia Española de Self Storage

La 6ª Conferencia Española de Self Storage tendrá lugar enBarcelona el 25 de octubre. Para esta edición contaremos conla presencia de Víctor Küppers, a quien ya tuvimos el placer deescuchar en Sevilla en 2009, que en esta ocasión nos hablaráde Liderazgo en Tiempos de Crisis. En las mesas redondasabordaremos temas como Pack Ahorro Self Storage, ConsejosBásicos para Montar un Centro de Self Storage desde el puntode vista técnico y Panel de Operadores de Europa y España,con traducción simultánea español-francés.

Hemos trabajado en un programa que estamos convencidosde que es más concreto y útil para los operadores de SelfStorage, con feria de proveedores y una ocasión única parahacer networking y buscar sinergias con el resto de laindustria, aprovechar oportunidades de negocio y conocer lasnovedades de AESS. Y todo ello, conscientes de los tiemposque corren, a precio lowcost.

Spanish Self Storage Conference

The sixth Spanish Self Storage Conference will be held inBarcelona on the 25th of October. On this occasion VictorKüppers, who was one of the speakers in Seville in 2009, willbe welcomed back. This year he will be talking on the subjectof “leadership in times of crisis”. At the round table session,with Spanish-French simultaneous translation, topics willinclude self storage savings packs and basic tips for setting upa self storage facility from a technical standpoint. And, therewill be a panel of operators from Europe and Spain.

The programme will be pragmatic and useful for self storageoperators and will provide a unique occasion to network andlook for synergies within the rest of the industry, find businessopportunities and get to know what is going on within theAESS. Above all, being aware of the present economicsituation, the cost has been kept low.

European Small Business Portal

Would you like to find out what the EU does to boost smallbusinesses in Europe and in the global market, and what it cando for your business? The European Small Business Portalgathers together all the information provided by the EU on andfor Small and Medium-sized Enterprises (SMEs), ranging frompractical advice to policy issues and from local contact pointsto networking links.

The 23 language versions of the European Small BusinessPortal are designed for users across Europe, from newentrepreneurs looking for EU level financing, to thoseinterested in finding new markets, partners or specific supportservices. The website also contains news and information onevents and examples of successful SMEs that received EUsupport. For more information, visit:http://ec.europa.eu/small-business/

Shurgard Europe acquires 72 properties

Shurgard Europe, a Public Storage European joint venture,paid €172 million to acquire the 80% interest it did notalready own in two joint ventures that operated 72 self storagefacilities (353,000 m2 of storage space) in all seven countriesin which Shurgard Europe operates. Public Storage providedthe funding for the acquisition.

Shurgard Europe is the largest developer, owner and operatorof self storage facilities in Europe, with a total of 189 stores inBelgium, Denmark, France, Germany, the Netherlands,Sweden and the UK. Shurgard is one of the pioneers of the selfstorage concept in Europe and has worked successfully to buildcustomer awareness and acceptance of self storage acrossEurope. Shurgard’s European network caters for more than100,000 consumers and has 929,000 m2 of net rentablestorage space.

Shurgard is the European leader in self storage solutions andis 49% owned by Public Storage (NYSE:PSA).

Public Storage, a member of the S&P 500, The Forbes Global2000 and FT Global 500, is a fully integrated, self-administered and self-managed real estate investment trust thatprimarily acquires, develops, owns and operates self storagefacilities. The company’s headquarters is located in Glendale,California. By the 31st of December, 2010 the company hadan interest in 2,048 self storage facilities located in 38 states,with approximately 12 million net rentable square metres inthe United States and 189 storage facilities located in sevenwestern European countries, with 929,000 net rentable squaremetres operated under the “Shurgard” brand.

The company also owns a 41% common equity interest in PSBusiness Parks, Inc., which owned and operated approximatelytwo million rentable square metres of commercial space,primarily multi-tenant office and industrial space, on the 31stof December, 2010.

IT-Toolkit for Energy Efficient Retrofit Measures

The IT-Toolkit for Energy Efficient Retrofit Measures is acollection of computer tools for public buildings. This freetoolkit supports owners and planners of public buildings withvarious tasks, including: the identification of buildings that usetoo much energy, the energy efficient operation of buildings,detailed inventory and building documentation, ideas forenergy efficient refurbishments, the development of energyefficient retrofit concepts based on standards compatible toEPBD CEN standards and, the economical evaluation ofenergy performance contracts.

For more information, visit: http://www.annex46.de/tool_e.html

Mortgages: better protection for EU consumers?

The financial crisis has shown the damage that irresponsiblelending and borrowing practices can have on consumers andlenders, as well as the financial system and the economy atlarge. This is particularly important in today’s integrated EUmarketplace. The European Commission is determined to ensure that suchpractices are not repeated, and new legislation is being proposedto help consumers regain confidence in the financial system. Under the proposal, borrowers will enjoy a higher level ofprotection through robust rules concerning advertising, pre-contractual information, advice, creditworthiness assessment, andearly repayment. The requirement to provide personalisedinformation to the consumer through a European StandardisedInformation Sheet (ESIS) will allow consumers to comparemortgage conditions from different providers. The proposedDirective also aims to create a more efficient and competitivesingle market for mortgages, by creating a level playing field forall those involved and making cross-border activity easier. It nowpasses to the European Parliament and the Council of Ministersfor consideration.

The proposed Directive will:• introduce certain requirements for the advertising of mortgage

credit, e.g. wording that may create false expectations for aconsumer regarding the availability or the cost of credit willbe prohibited.

• ensure that all institutions involved in the origination anddistribution of mortgage credit to consumers are adequatelyregulated and supervised.

• establish principles for the authorisation and registration ofcredit intermediaries (companies who provide information andassistance to consumers seeking a mortgage and sometimesconclude mortgage agreements on behalf of a lender) andfor the establishment of a passport regime for thoseintermediaries. This means that once authorised in oneMember State, the intermediary would be allowed to provideits services throughout the Internal Market.

• ensure that lenders benefit from provisions enabling themnon-discriminatory access to information in credit databases.

Lenders and/or credit intermediaries will be required to:• make general information available at all times on the range

of credit products they offer. • provide personalised information to the consumer through an

ESIS. This will allow consumers to compare mortgageconditions from different providers.

• give explanations and meet certain standards for the provisionof advice.

• assess the consumer’s ability to repay, based on informationprovided by the borrower.

• disclose certain information concerning their identity, statusand relationship with the creditor, making any potentialconflicts of interest transparent.

Borrowers will:• benefit from extra information at all stages of obtaining a

mortgage, allowing them to make the right decisions.• benefit from a harmonised annual percentage rate of charge

in line with that set out in the Consumer Credit Directive, whichwill facilitate the comparability of advertising and the pre-contractual information.

• have an obligation to provide the necessary information toenable an assessment of their ability to repay.

• have an entitlement to repay their credit before the expiry ofthe credit agreement, subject to certain conditions to bedetermined by the Member States.

SME Envoys appointed throughout EU

Newly appointed envoys for each EU Member State willchampion the interests of Small and Medium-sized Enterprises(SMEs). Chiefly, they will ensure the correct application of EUlaws affecting SMEs and check that policies at national,regional and local level are enterprise friendly. As SMEs areaffected by policies that originate in different governmentdepartments, ranging from tax to financial and from regulatoryto education, the “SME Envoys” will help small businesses toconcentrate on their core business and create new jobs.The Small Business Act (SBA) is the EC’s SME policy that aimsto make Europe more business friendly and encourage peopleto start their own business. In future, the new envoys will meetwith SME representative organisations at EU-wide level withinthe SBA Advisory Group. This is part of the new governancecalled for in the recent review of the Small Business Act. Thisnew mechanism will ensure closer monitoring and co-ordinated action in support of SMEs.The SBA has already helped to cut regulations, providedfunding for more than 110,000 SMEs so far, with 200,000planned to benefit from SME bank loan guarantees andventure capital schemes by 2012, and proposed smallbusiness friendly solutions on issues such as late payments andaccess to public procurement. Member States have also takensimilar measures.

…continued on Page 6

Tony Richman is FEDESSA’sEuropean Representative

Tony Richman

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FEDESSA NEWS Self Storage Europe INSURANCE FEATUREVolume 3, 2011

This article is based on a presentation given by LorraineDicksee of Reason Global Insurance at this year’s FEDESSAConference.“Unlike most other forms of insurance, this product can saveyour business from disaster and keep customers happy, inaddition to generating welcome extra revenue in thesechallenging financial times,” said Lorraine Dicksee.Risk ManagementAny good business owner or manager will assess the risks towhich their business is exposed. Then, when the analysis iscompleted, they will take steps to eliminate or minimise thoserisks. One of the ways of doing this is to transfer the risk, andthe usual method is by arranging insurance cover.Although most self storage companies’ state in their customerrental agreements that they do not accept any responsibility orliability for loss of or damage to customers’ goods while stored,a court of law will not necessarily support this exclusion ofliability. There is much consumer protection legislation in placethroughout Europe, which has led to the courts favouringprivate individuals when in dispute with businesses. Unfortunately for the industry, you can say whatever you want

in your rental agreements, and those terms may be sustainable,but it is fairly unpredictable and will rely on the specificcircumstances of the dispute and how a judge views it. For thisreason it is vital to include reference to the customers’ goodsin your risk analysis process.While there is no guarantee that in this context the extent ofthe risk will be limited by the actual value of the items stored,this is the only way you can assess the likely risk to the business.And, the only way of calculating the exposure is to askcustomers to state the value of the goods they are storing.Several years ago the UK industry was asked to requeststatements of value from customers and there was concern thatthis would create difficulties. However, the decision was madeto go ahead and these days it is normal practice and very rarefor a customer to refuse or ask questions. The value is writteninto the rental agreement.If the figures given by each customer are totalled you will knowthe approximate full extent of your risk exposure. That givesyou a fairly good idea of the level of liability insurance youneed to purchase.

Check regularly to ensure the insurance cover is kept at asufficient level throughout the life of the policy. Always allowa little extra for fluctuating values, because your customerprofile is changing all the time, and for the possibility of youhaving to fund legal expenses to defend claims.Now recoup the insurance cost and more!It is possible to arrange an insurance policy under which youmay pass on the benefit and the cost of insurance cover forcustomers’ goods in store to your customers. In order to do so,it is vital that you:• have the full agreement of the insurer to your plans.• ensure that your policy and customer documentation are

carefully drafted so they do not contravene the terms of theEU Insurance Mediation Directive (IMD) and any localisedsupporting legislation.

• do not breach the insurance regulations in any other way.For example, by giving insurance advice to your customers,which you are not qualified or permitted to do.

With the right help, you will be able to overcome theseobstacles and make significant extra revenue from theprovision of insurance to customers. And, the income fromcustomers should fund your insurance premiums and make youa healthy profit. Maximise the income from the provision of insurance tocustomersCustomers will inevitably object to paying for insurance, simplybecause they want to minimise their financial outlay. Liability claims are bad for business and bad for customersIf a customer’s goods are not insured and a claim is made,the basis of the claim is usually linked to alleged “negligence”on the part of the self storage company. However, not allclaims arise out of negligence; some examples which supportthis fact are provided later in this article.Liability claims are never resolved quickly or easily and oftenresult in long drawn out disputes, higher amounts claimed thanfor insured goods, escalating costs (possibly including lawyers’fees) and, at the end of it, no guarantee the customer will bepaid. The consequence is usually bad feeling and, potentially,bad publicity for the business.“I do not wish to insure my goods”It is common for customers to tell you that their goods areabsolutely worthless.

…continued on Page 8

Customers’ Goods InsuranceThey have reduced the cost and time of setting up a companyfrom 12 days and €485 in 2007 to 7 days and €399 in 2010,enhanced SMEs’ access to credit and launchedinternationalisation schemes.

However, more needs to be done. The newly appointed SMEEnvoys are expected to focus on and accelerate actions atnational level.

Background

The recent SBA Review pointed to the need for bettergovernance to ensure that the “Think Small First” concept isapplied at all levels of policy making. The EC has appointedMr. Daniel Calleja Crespo, Deputy Director-General at theEuropean Commission’s Directorate General for Enterpriseand Industry, as the EU’s SME Envoy. The SBA Review alsocalled on Member States to appoint SME Envoys, whosecentral role will be to ensure that the “Think Small First”principle is applied at all levels of government, throughout theEU.

Europe’s 23 million SMEs are at the heart of its economy andsociety, accounting for 98% of businesses and two thirds oftotal private employment.

New buildings in Andalucía now need energy certificate

All new buildings and industries in Andalucía, Spain now haveto obtain a certificate of efficient energy usage under a newdecree, which intends to make savings equivalent to 400,000tons of petrol over seven years.

The certificates will have a duration of ten years and thecertification scheme applies to public and non-residentialbuildings, as well as residential buildings. The certificate ofefficient energy usage must be obtained when applying forbuilding licences. The rule is contained in the decree of EnergyDevelopment and Efficiency, approved by the GoverningCouncil.

The decree dictates the guidelines for establishing moreefficient building systems, as well as promoting the use ofrenewable energy and biofuels in the transport sector. For oldbuildings that do not need to be certified, the Andalucíanauthorities have created economic and fiscal incentives to helpimprove energy efficiency voluntarily.

...the “Think Small First” principle is applied at all levels of government…

…intends to make savings equivalent to 400,000 tons of petrol over seven years.

Lorraine Dicksee

Lorraine Dicksee is the GeneralManager of Reason Global

Insurance, who are specialistinsurance brokers for

the Self Storage Industry

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COUNTRY FEATUREVolume 3, 2011

Following our recent country feature on Finland, in this editionwe move south to Portugal, which is fitting considering the recentsuccessful European Self Storage Conference was held inVilamoura in The Algarve.

Portugal, which looks out from the Iberian Peninsula into theAtlantic Ocean, is a country with a rich history of seafaring anddiscovery. However, when it handed over its last overseasterritory, Macau, to the Chinese in 1999, it brought an end toits era as a colonial power.

The roots of that era stretch back to the 15th century, whenPortuguese explorers like Vasco da Gama put to sea in searchof a route to India. By the 16th century, these sailors had helpedbuild a huge empire, including Brazil and swathes of Africa andAsia. There are still some 200 million Portuguese speakersaround the world today.

For almost half of the 20th century Portugal was under adictatorship and Antonio de Oliveira Salazar was the key figure.And, the dictatorship’s refusal to relinquish its grip on itscolonies, resulted in expensive wars in Africa. This period inPortugal’s history was brought to an end in 1974 by a bloodlesscoup, known as the “Revolution of the Carnations”, whichushered in a new democracy. By the end of 1975, all ofPortugal’s former colonies in Africa were independent.

Since becoming a member of the European Community in1986, Portugal’s largely agricultural economy becameincreasingly diversified towards the service sector, which nowaccounts for 75% of its Gross Value; agriculture having slippedto just 2.3% behind Industrial/Manufacturing at 22.7%.

Portugal enjoyed solid growth in the 1990s, but GDP per headremains well under the EU average. The 2008 financial crisisleft Portugal with a huge budget deficit, and in 2011 it becamethe third EU country, after Greece and Ireland, to ask forfinancial assistance.

…continued on Page 11

And, that if something happens to their goods while in store theywill not make a claim. Unfortunately, experience has proved thatwhen something goes wrong this reassurance is usually completelyforgotten and a claim is made. And, you can be sure that whenthe claim documentation arrives you will discover the customerpurchased everything at Harrods! We also know that some of thepublic see insurance as an “easy touch” and many claims arehighly inflated or exaggerated.

“If your store is clean, dry and secure I don’t need insurance”

Many incidents can occur which are completely unrelated to thecondition or quality of a storage facility. Insurance is there to dealwith the unexpected, which does happen unfortunately. Over theyears insurers have paid out large sums in claims. The followingare just a few examples:

• Flooding caused by extreme weather conditions, which nostore could have withstood; remember some of the TVcoverage in various parts of Europe in recent years.

• Roof torn off by a localised tornado; in the UK!

• Fire in the premises next to the store led to smoke damage.

EU Storage Standards: insurance is compulsory

The EU Storage Standard makes it clear that:

1) all goods stored within a self storage facility must be insured.

2) they must be insured for their full value.

3) the company must not complete the contract with the customerunless 1) and 2) are complied with.

For UK readers: these requirements also appear in the SSAmembership conditions.

So, whatever objections are raised, the fact remains that goodsmust be insured.

“I have my own insurance”

There are three important points here:

1) If the cover provided by the customer’s own insurer is notenough to cover the risks involved, they may still make a claimfor their uninsured loss.

Do not check the customer’s insurance policy, as that may beconstrued as “approval” and if a claim is subsequentlydeclined, the customer may blame you. Instead, ask thecustomer to provide a letter from the insurer confirming all thedetails of the insurance policy. There are ways you can do thisthat will help you secure an insurance sale.

2) If the customer’s own insurer pays a claim, the insurer may tryto recover their costs from you, especially if they believe theremay be evidence that the claim arose due to your negligence.

If you are likely to end up with a claim on your record anyway,why not work at dissuading the customer from taking their owninsurance so you earn some income from it?

3) If you can persuade the customer not to rely on their owninsurance, and there are quite legitimate reasons that willbenefit the customer as well as your business, you will not missout on valuable additional income.

“I will take your insurance, but for a minimum amount”

It is a general principle of insurance that the sum insured reflectsthe full replacement value of all the goods stored, and that theinsured amount is maintained at that level throughout the period

of storage.

If the customer under-insures their goods they will not receive fullcompensation in the event of a claim.

For example: if a customer insures for €2,000 but the actualvalue of their goods is €6,000, they are effectively "self-insuring"66.66% of the risk (€4,000). As a consequence, they will haveto contribute 66.66% to any subsequent claim they make.Therefore, if they claim €600 they will only receive €200 from theinsurer and will be expected to fund the €400 balancethemselves.

Under-insurance produces dissatisfaction all round:

• Claims settlements are reduced.

• Bad feelings and disputes often arise as a consequence.

• The business loses out on income.

Tread carefully when including an automatic minimum level ofinsurance

Many self storage companies include a small amount of insurancecover within their rental pricing, or include a set level of insurancecover “free”.

Beware of the pitfalls! If you do not make it clear to customers thatthey will be financially penalised in the event of a claim if thisminimum amount of insurance is insufficient to cover the full valueof their goods, they may blame you for not telling them. Do stress,in writing, that it is a requirement of the insurance that they mustinsure for the full value and what the consequences are of failingto do so.

Learn how to overcome these objections to avoid missingout on this valuable income

• Train your staff: get “buy-in” from all the team and give themthe tools to deal with customer objections to taking insurance.

• Provide hand-outs to customers: these should be provided byyour insurer or broker to avoid risking any breach of insuranceregulations.

• Enlist professional support from the experts; this will paydividends longer term.

The returns for this investment are potentially great; in some casesthe self storage company’s insurance income has been increasedthreefold.

The final outcome is that your business will be protected, you willincrease your revenue and your customers will be very happy!

Self storage in Portugal

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INSURANCE FEATURE Self Storage Europe

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Volume 3, 2011 COUNTRY FEATURE

The President is the head of the Portuguese Republic, but the roleis mainly ceremonial. However, incumbents can appoint primeministers, dissolve parliament and call elections.

The leader of the Portuguese Socialist Party, Jose Socrates, firstbecame Prime Minister in 2005 and led his party to anotherelection victory in 2009. However, after the party lost its overallmajority in 2009, Socrates formed a minority government andhad to negotiate support for changes to legislation on a case-by-case basis.

Tough austerity measures made little impact on what had becomeone of Europe’s biggest budget deficits, and the governmentfound itself caught up in a never-ending battle to maintain thecountry’s international credibility, in the face of market doubtsabout its solvency.

By the summer of 2010, Portugal, together with Greece andIreland, had become one of the countries most severely affectedby the Euro Zone crisis that succeeded the global financial crisisof 2008/9. By the end of 2010, unemployment had climbed toover 11%, the budget deficit stood at 9.3% and Portugal had oneof the highest levels of household indebtedness in the EU.

Jose Socrates’ minority government pushed through increasinglytough austerity measures in an effort to prevent Portugal fromgoing the way of Greece and Ireland, as one of Europe’s baddebt “dominoes”.

However, bitter divisions within the political establishment over anew round of public sector cuts in March, 2011 (thegovernment’s fourth set of proposals in a year) led to the collapseof the government and made an EU rescue look inevitable.

Socrates resigned in March, 2011 and in April, 2011 hisgovernment, acting in a caretaker capacity, asked the EU forfinancial assistance, after admitting that it had missed its 2010target for cutting its budget deficit.

So, what do the stats look like?

Portugal, which has a population of around 11 million, has theworld’s 19th highest “quality of life”, according to the EconomistIntelligence Unit. It is the 13th most peaceful and the 8th mostglobalised country in the world. It is a member of the EU and theUN, as well as a founding member of the Latin Union, theOrganisation of Ibero-American States, OECD, NATO,Community of Portuguese Language Countries, the EU’s EuroZone, and it is also part of the Schengen Area.

By June, 2010 there were 5.2 million Internet users(Internetworldstats) equating to almost half the population.

Many foreigners live in Portugal, not least because of itsfavourable climate. While popular areas such as The Algarveattract those looking for sand, sea and relaxation, shortexcursions across the countryside reveal rarely visited places thatstill offer a sense of discovery. All over Portugal there is a feelingof an old-fashioned charm, with medieval castles and picture-perfect villages scattered over meandering coastlines and flower-covered hillsides. The country’s proud history is easilydiscernable in towns such as Coimbra and Sintra; while, thebustle of commerce in the country’s capital, Lisbon, and itsnorthern rival, Porto, hasn’t hidden the magical places still leftfor the wanderer, with riverside views, cobblestone streets andrattling trams framed by looming cathedrals.

So, how is Portugal’s self storage industry?

A national association for self storage operators does not yet existin Portugal; although, FEDESSA hopes that an association willbe formed soon.

In recent years, a number of entrepreneurs have taken the plungeand invested in the self storage industry. While, undoubtedly thisinvolves risk, as customers tighten their economic belts, it canalso provide opportunities to “bargain” for land, constructionand development prices as well as finding potential fundingsources. There is also something to be said about establishingan early foothold as self storage becomes better known.

In a recent edition we featured the Espaço Para Tudo, Ldacompany, which opened its first self storage facility in 1998 andnow has facilities in the Lisbon and Porto areas. In this edition,we feature Espazo Plus Self Storage, founded in 2008 in theLisbon area and BigBox Self Storage with its first facility openingthis year in Matosinhos, near Oporto.

We hope you find their stories interesting and that together theymay establish a national association in Portugal and in turnbecome part of FEDESSA.

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After completely renovating an existing building, BigBox SelfStorage opened its new facility in Matosinhos, near Oporto,Northern Portugal in June this year. The Portuguese self storage industry is still in its infancy, with onlya handful of operators. This is one of the main reasons why aPortuguese Self Storage Association has not yet been formed.However, FEDESSA is hoping that with the arrival of BigBoxnumbers are now increasing sufficiently to warrant theestablishment of a national association in the not too distantfuture. And, in turn, it is hoped that a newly formed PortugueseSelf Storage Association will join the FEDESSA family.

Filipe Nieto Silva, who is at the helm of BigBox, is keen to meetwith other Portuguese operators, not least to assure them of hisintentions to provide “healthy competition” and to develop theawareness of self storage in Portugal.In addition to the preparation over the past couple of years, therecent months have been particularly hectic with getting thefacility ready in time for opening. Matosinhos is the first phase of its business strategy, as BigBoxwill be searching for new locations in the next few years, to fulfilits expansion plans.The Matosinhos facility is around 2,500 m2 in area. Some 250units are accommodated over two floors and the unitsthemselves range from 2 m2 to 20 m2. However, some biggerunits from around 200 m2 right up to 500 m2 will soon beavailable on another floor.

Office hours are from 9 am until 6 pm, with access to the facilityfrom 7 am until 11 pm daily. It is also possible, in exceptionalcircumstances, for customers to arrange for access times to beextended.Security measures include: access control, CCTV cameras,individually alarmed units and a general alarm. It is too early yet to know for certain by whom the facility will beused; but, it is expected to be the usual mix of domestic/privatecustomers and business users. The important action required at this stage is to make potentialcustomers aware of the service and to start filling the units asquickly as possible. In addition to its impressive signage, BigBoxis also concentrating its marketing drive on the Internet, directmailings, leaflets and local radio.We look forward to hearing from Filipe and the BigBox team,and discovering if initial expectations measured up to reality aswell as news about further expansion.

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Self Storage Europe COMPANY FEATUREVolume 3, 2011COMPANY FEATURE

D

BigBox is Portugal’s latest newcomer

Bluespace, the leading Spanish self storage company with 19facilities located in Barcelona, Madrid and Valencia, over86,000 m2 of rentable space and some 12,000 activecustomers, has recently acquired Reserva Self-Storage, S.L. toreinforce its presence in Barcelona.

The transaction was financed with a €4.5m capital increaseby Bluespace majority shareholder, Pramerica Real EstateInvestments Ltd., a US-based investment fund with a strongknowledge base in self storage. The chairman, Philip Barrett,said: “Despite the severe economic crisis in Spain, we are verysatisfied with our investment in Bluespace, and the acquisitionof Reserva strengthens our leading market position within therelatively new Spanish market.”

Company CEO, Alexander Ruckensteiner, said: “We arepleased to have the support of the international investorPramerica, which continues to invest in Spain despite all of thecountry’s economic uncertainties. This also proves that theBluespace project is competitive on the international financialmarket.”

Reserva has two well-located buildings in Barcelona, whichensure maximum comfort and convenience for self storagecustomers. With the purchase of these two facilities, Bluespacereasserts its strategic commitment in the metropolitan area ofBarcelona, which has three million residents and one of thehighest population densities in Europe; factors which contributeto the growing demand for self storage services.

With nine facilities in Barcelona, Bluespace can now offer thebest solution to the storage needs of the area’s residents, whocan access a Bluespace self storage unit in less than fiveminutes by car.

The two Reserva sites fit perfectly into Bluespace’s portfolio,thanks to their location and the quality of the facilities, whichare equipped with the latest technology.

In the next few months, Bluespace will convert Reserva to itscorporate brand and will change all internal processes to itsproven business model. The Reserva operations workforce,which comprises six people, will be incorporated into theBluespace team, increasing the company’s overall headcountto 80.

In order to optimise the training process, Bluespace willencourage best practices with a view to the companies learningfrom each other and mixing personnel, a technique whichproved successful in 2006 after the acquisition of EasyBox.

Despite Spain’s unprecedented economic and financial crisis,the demand for self storage in Bluespace’s home market wasup 10% in 2010, compared to 2009. And, although theawareness of self storage is generally low, Bluespace was ableto expand the market due to continued and innovativeimprovements, both in operations and Internet marketing.

In order to celebrate the FEDESSA award “European Facility ofthe Year”, which the company won last year, the Bluespacemanagement team went skiing together in the Austrian Alps.Alexander Rucknsteiner commented: “Excellent team work anda strong company spirit are crucial in order to be successful inthese difficult economic times. I am convinced that the qualityand enthusiasm of our people are the principal factors for thepositive development of our company.”

Both Bluespace and Reserva are members of the Spanish Self-Storage Association (AESS) and part of the Federation ofEuropean Self Storage Associations (FEDESSA).

Meanwhile, Jos Collin, the founder and former generalmanager of Reserva, will continue as President of the AESS untilautumn 2011.

Bluespace Acquisition

The Bluespace team (L to R): Julio Cepero, Tony Solanes, Silvia Raspall, Luis Correa, Alexander Ruckensteiner,

Bartomeu Fiol, Joaquin Izquierdo, Salvador Ruiz, Nicolas Perez and David Raya

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Storage World, an Irish-owned operator of self storage facilities,has invested €3 million over nine years to open three facilitiesin Dublin, Cork and Limerick. It has earmarked furtherinvestment of €5 to €7 million to bankroll expansion into Britainand emerging European markets.The company’s Dublin facility in White Heather Industrial Estate,began trading last September. “We secured a 65,000 sq. ft.site on the South Circular Road in early 2010, built out thefacility and started trading in September,” said Aidan O’Brien,director, Storage World.“We knew if we could find a site close to the city centre, therewould be significant demand as there were no other self storagefacilities in the city centre. With the exception of one inDeansgrange, the others are all based outside the M50. Ourhunch has paid off and the first phase is already 80% full.”Storage World opened for business in 2002 in Limerick, whereit has a self storage facility in Eastlink Business Park. In additionto the Dublin site, it also has premises in Mary Street in Cork,which opened in 2009. “Self storage is about alleviating people’s short-term storageneeds. It is not an enormously well-known concept in Ireland,but it is very big in the US, Australia and New Zealand,” saidAidan.

“You rent rooms from 25 to 500 sq. ft. over periods from as littleas a month to as long as you want.You pay a set charge with no rates, management fees orelectricity bills,” he said.Storage World has 12 staff and, according to Aidan, itgenerated revenues of between €1 and €2 million last year.Aidan is a full-time partner in the business, having bought intothe company in 2008.He said that 65% of Storage World’s customers were homeowners who were moving, redecorating or emigrating. Theremainder, he said, were businesses that included coffee shops,fashion retailers, print companies and interior designers.“We split the warehouse space into a number of mezzaninelevels, sub-divided those levels and put a passenger lift runningthroughout the building,” he said. “You are given your ownunique code to access the facility 24/7. Everything is monitoredaround the clock with CCTV, so we see who is entering andleaving. That gives people peace of mind.”Aidan said the company planned to have three self storage unitsup and running in London in 2011. “Earlier this year, we signed a partnership and management dealwith a UK institutional landlord to roll out storage facilities withincentral London’s congestion charge zone,” he said.“Commercial space within that area is usually leased for aminimum of 12 months, which is very inflexible for storageneeds. We will now be able to provide a network of storagesites in central London to provide convenience to residents andbusinesses.”

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Storage World invests €3m in new facilities

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COMPANY FEATUREVolume 3, 2011

When we met the Espazo team in Vilamoura, we immediatelyrealised that it is a family-oriented company with Paulo, Patriciaand Joao Vala and Joao’s daughter, Filipa Amado at the helm.This relatively young company opened its first facility in 2008,and plans to expand in line with demand.

The first facility had storage units on two floors; a further twofloors were added in 2009, providing a total 3,500 m2 ofstorage space.

A second building was converted to self storage in 2009 and tomeet the growing demand an additional mezzanine floor wasadded in 2010, taking the total space to 2,500 m2.

A third building with storage space of 2,000 m2 was added tothe portfolio this year.

All three facilities are located within the city of Lisbon, Portugal.Two facilities enjoy good frontage locations on main roads; thefirst comprising some 350 units and the second 150 units, withmore to be added. The third facility has 166 units, with anoption to expand into neighbouring buildings.

The main family business is Real Estate Investment within thecommercial and warehouse building sector. It was fairly easy,therefore, to set up an independent business to expand into selfstorage, when considering the best use for some of its assets.As Paulo stated: “It was a perfect marriage!”

While access is not 24/7, the operations and reception staff ison hand giving personal service to customers from 8 am to 8 pm, Monday to Friday at all three sites, and 9 am to 7 pm onSaturdays and 9.00 am to 1 pm on Sundays.

The facilities are covered by CCTV cameras, individual alarmsystems on each unit, fire detection equipment and accesscontrol systems.

Units vary in size from 1 m2 up to 45 m2. The first two buildingsare already filled to 70% capacity and the third is starting to fill.

…continued on Page 18

Espazo Plus Self Storage

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All rentals are a mix of around 66% domestic (household goods and personaleffects) and 34% commercial use.Expansion plans will continue in 2011/2012, despite the economic situation. Suchhas been Espazo’s success and growth rate that it is now planning to open anotherself storage facility on The Algarve in Albufeira. The facility, an existing buildingwhich is being renovated, is expected to open at the end of 2011.“Greening options” have included converting to paper-free invoicing and usingspecial roof insulation to help keep the buildings cool (Portugal enjoys hottemperatures throughout most of the year).Market research has shown a demand for self storage services, in particular byforeign nationals. Espazo believes that the foreign nationals who own villas on theAlgarve need self storage services. There are many who rent their properties andneed to store their personal possessions. Others need the security of self storagewhen leaving their properties over the winter months. These are just a few of theopportunities that Espazo will be marketing to expats.

Espazo organised an open day for its first facility in Lisbon, but is going to rely onthe media, linked to company news items and PR about the industry, to advertiseits Albufeira facility. Google advertisements, websites, social networking sites andInternet related promotions are also used for all the facilities. In addition, directmail flyers, billboards and signage all help to raise customer awareness of theservices provided.In addition, the company supports various children’s charities by offering freestorage space for toys and bicycles, etc.Despite the global economic situation, the major obstacle to Espazo’s growth isthat the self storage concept is not well known in Portugal and neither is it generallyunderstood what self storage can do for its potential customers.

Also, there are no specific problems with legislation, other than normal buildinglicence procedures, which are notoriously slow in Portugal!As Espazo sees it, the real risk of the present economic climate is the possibleeffect on asset values if Portugal was to exit the Euro Zone. This is seen as a biggerconcern than that of losing customers.

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Volume 3, 2011LATE NEWS

AESS and ACN

During June the Spanish Self Storage Association (AESS) attended the nationalcongress of the Spanish Association of Business Centres (ACN) in Bilbao, topromote the type of services offered by self storage operators. An AESS-ACNbrochure was also included inside the congress folder. ACN centres ofassociated businesses will also receive the information via the ACN newsletter.

ACN is a non-profit organization that brings together 160 business centres.Established in 1993, it represents the sector of business centres in Spain and ispart of the Spanish Confederation of Business Organizations (CEOE) andFoment del Treball de Catalunya. It is also promoter and founder of theConfederation of European Business Office Centre Associations (EuroCBCA),the presidency of which ACN currently holds.

In order to reinforce this type of relationship, a networking session will take placebetween ACN and AESS members, the first taking place in Madrid at 7 pm onthe 28th of September, 2011. For more information e-mail AESS directly at:aess@aess.es

FEDESSA’s LinkedIn Group

FEDESSA has set up a discussion and information exchange group, using the“LinkedIn” social networking platform. Group Membership is free and open toany of the FEDESSA Member Associations, as well as the companies that aremembers of their relevant constituent National Associations. Access is alsoextended to individual staff members working for those companies.

The aim of the networking group, which was set up in February this year, is toencourage discussions about the Self Storage Industry within Europe, to providea platform for promotions and generally to increase networking, exchange ofbest practice and other useful information.

If you are already signed up with LinkedIn, and meet the above criteria, you canapply to become part of the FEDESSA LinkedIn Group. Otherwise you will needto sign up and create your own LinkedIn profile first, before making yourapplication.

We are really looking forward to seeing you and hearing your views on LinkedIn.

Social networking and the AESS

The Asociación Española de Self Storage (AESS), the Spanish Self StorageAssociation, has taken note of the importance of participating in socialnetworking in order to have a “presence” and to help promote businessopportunities.

The AESS wants to combine efforts and encourage its members to participatein the opportunities that the new communication systems offer.

With this in mind, the AESS has requested its Spanish members to tell them ifthey use any of the existing social networks (e.g. Twitter, Youtube, Facebook,LinkedIn, etc.) and to pass their links onto the AESS HQ.

The AESS has also created a Facebook profile in order to help users and toincrease awareness of the industry in Spain. For more information, visit:http://www.facebook.com/pages/ASOCIACION-ESPA%C3%91OLA-DE-SELF-STORAGE/116377088439548

COMPANY FEATURESelf Storage Europe

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