Founding and Early Vision (2004–2005)
Smart Storage began in 2004 in the North West of England, founded by Jon Wyles and John Harrington. They quickly spotted an opportunity in the underdeveloped regional self-storage market. To seize it, the founders secured a 30,000 sq. ft warehouse in Bromborough, Wirral. They took the property on a leasehold basis and converted it in phases into a modern self-storage facility.
The business quickly proved its potential. Within twelve months, strong trading results and rising customer demand drew the attention of Bridges Ventures. This private equity firm had a track record of supporting high-growth businesses in underserved regions.
Early-Stage Funding and Expansion (2005–2007)
At the outset, Smart Storage was supported by debt finance from the Merseyside Special Investment Fund (MSIF, now River Capital). This early-stage facility provided the working capital needed to establish and launch the first store.
In 2005, Smart Storage raised £2 million of equity from Bridges Ventures who became the principal backer of the business. With fresh capital, the company scaled rapidly, acquiring four further sites across Liverpool, Widnes, Warrington, and Preston.
By 2007, Smart Storage had built a five-site portfolio across the North West. This regional clustering gave the company operational efficiency, with shared marketing, staffing, and logistics across the estate.
Navigating Financial Headwinds (2008–2012)
The global financial crisis tested many growth businesses, and Smart Storage was no exception. Credit was scarce, consumer spending was subdued, and banks were cautious. During this period, the business relied on senior debt facilities from the Royal Bank of Scotland alongside the equity capital provided by Bridges Ventures.
Despite the turbulence, Smart Storage maintained stability and continued to strengthen its brand presence. Careful management and disciplined financing allowed the business to weather a challenging economic cycle and emerge well-positioned for the recovery.
Leadership Transition: Move to Canada (2013)
By 2013, Smart Storage had established itself as a respected regional operator. At this stage, co-founder and Managing Director Jon Wyles made the decision to leave the business in order to pursue new opportunities in the self-storage sector in British Columbia, Canada.
Jon recognised that Canada’s self-storage market offered significant potential for growth. Drawing on his experience from building Smart Storage, he began laying the foundations for new ventures in North America. This came to fruition with the creation of Stop and Store Ltd (Canada) and subsequently Stop and Store Inc (USA), both designed to capitalise on emerging demand in those markets.
Jon’s departure marked a natural inflection point for Smart Storage. While he focused on building these North American based businesses, Smart Storage entered its next phase under new leadership and with fresh investment.
MBO and New Growth with Seneca Partners (2014–2016)
In 2014, Bridges Ventures exited its investment through a management buyout, supported by Seneca Partners and debt from NatWest. This MBO provided new impetus, with Seneca backing the management team to expand the portfolio.
Over the following two years, Smart Storage invested in both new sites and facility upgrades. A site in Altrincham was added to the portfolio, an additional Liverpool location was secured, and the Widnes facility was expanded with new drive-up units. Collectively, these projects added over 60,000 sq. ft of lettable space and represented the first significant expansion since the pre-2008 period.
Exit to Kangaroo Self Storage (2018)
By 2018, Smart Storage operated six sites—Wirral, Liverpool, Widnes, Warrington, Preston, and Altrincham—with a combined footprint of around 240,000 sq. ft. The business had become a recognised brand in the North West, with strong occupancy and a proven operating model.
On 27 April 2018, Kangaroo Self Storage acquired Smart Storage for £13 million. The transaction, financed through a mix of equity and HSBC senior debt, tripled Kangaroo’s portfolio from three to nine facilities and expanded its footprint to 442,000 sq. ft (of which 310,000 sq. ft was leasehold). For Kangaroo, the acquisition marked its first move into England and a transformational step in its growth journey. For Smart Storage’s investors and management, it represented the successful culmination of over a decade of disciplined growth.
Key Takeaways
- Early Support: Initial funding from MSIF was vital in launching the business.
- Regional Strategy: Concentrated growth in the North West created operating efficiencies and brand recognition.
- Financial Resilience: The business survived the 2008–2012 downturn through disciplined use of debt and equity.
- Leadership Evolution: In 2013, Jon left the business to pursue international opportunities, founding Stop and Store Ltd (Canada) and Stop and Store Inc (USA).
- Private Equity Impact: Early support from Bridges Ventures and later investment by Seneca Partners each played crucial roles in scaling and securing the eventual exit.
- Successful Realisation: From a single warehouse in Wirral, Smart Storage became a six-site operator and delivered a £13 million exit to a strategic buyer.
