KSS Information Memorandum 2021

Investment and Growth Strategy

Strong disciplines in investment activities have been the foundation for the company’s sustained success. Understanding the true risk and issues with self storage investment has enabled prudent and careful acquisitions. Kennards Self Storage has been discerning about location and devlopment quality. The preference being to acquire property and develop new self storage centres, over acquiring going concern centres. The development of new centres has the following benefits:  Build the quality of product that fits the Kennards Self Storage Brand.  Source superior locations to incumbent competitors.  Develop properties with potential scale for long term growth. The company identifies and accepts the risk of:  Acquisition and property related risks.  Development consent from local authorities.  Time and cost risk of construction of a new project.  Rent-up risk and lead time to reach mature occupancy. Future growth strategy is to fill identified market gaps in Kennards existing market areas in Australia and New Zealand. Asset Management services are provided to passive investors. However, this is not a principal strategy of growth. The company prefers to own and operate its Assets. Each of the owners, Sam and his brothers Walter and James, plan to continue to grow the business Kennards Assets Alternative Use It is recognised strong demand for residential development property has pushed property prices to very high levels in recent years, particularly in Sydney and Melbourne. Kennards Self Storage has a number of well located inner-urban properties that have proven to be attractive to residential developers. While alternate use re-development is not an active part of KSS investment strategy, the company is mindful of the demand and appeal many assets may hold for developers. This alternate use appeal further underpins the value of many of the assets.

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