Full-service vehicle storage facilities becoming a money-spinner for savvy investors
INCREASING demand for monitored and serviced storage facilities to keep collector cars and big-ticket ‘toys’ in Australia has prompted an uptick in specialised vehicle ‘hotels’ where pampered Porsches, fettled Ferraris and much-loved Lamborghinis enjoy a home-away-from-home experience.
People with a special, rarely driven vehicle – often an appreciating asset – or who have just one too many for the driveway are seeking secure locations to store their pride and joy in growing numbers, as the stereotypical mother-in-law’s garage or space in the back of a mate’s factory are no longer cutting the mustard.
This demand is prompting Australian entrepreneurs and investors to mix business with pleasure, with hundreds of vehicles worth many millions of dollars now being stored undercover in facilities worthy of a Trip Advisor review.
GoAuto spoke to the owners of several such facilities across Melbourne this week, discovering facilities with live-in hosts, climate-controlled rooms, security-controlled entrance and exit bays (colloquially known as ‘airlocks’), on-site maintenance and servicing, and even specially designed anti-static “sleeping bags” aimed at protecting owners’ vehicles from any dust that might settle on finely polished duco.
Although many may wince at the notion of spending upwards of $350 a month for essentially an indoor car space where a vehicle is parked away from prying eyes, for the owners of exotic, collectible and sentimental-value vehicles, this level of service is seen as a bare minimum.
For a circa $700 “premium” deal where battery health is monitored, cars are started and tyres rotated regularly, and kept in a state of concours cleanliness, full-service storage facilities are seen by some as worth every penny.
Savvy proprietors and investors are quickly discovering that this is a business that, once established, can prove a very tidy earner – especially if the level of service on offer is worthy of the outlay – and a quick tap of the calculator shows it is possible to earn $120,000 per calendar month before outgoings and overheads.
Among the vehicle storage proprietors GoAuto spoke with was former motorcycle stunt rider turned storage director Luke Follacchio, who alongside business partners Kristian Palumbo and Adrian Gervasoni, established Benzina Stables in the Melbourne suburb of Preston to offer “obsessive” levels of care for two- and four-wheeled vehicles.
Mr Follacchio said businesses such as his are expanding to offer more than simply a place to park someone’s pride and joy, and could provide storage packages ranging from the basic to the butlered, with time taken to ensure a vehicle is “stored to requirement”, and ready to be used in road-ready condition and looking its best.
“Initially, we decided to move into the business because, as collectors ourselves, we knew how much of an issue space can be. But soon we found other friends and associates who were in the same predicament … What started as us looking for a space for 10 bikes and a handful of cars has grown to a floor space just shy of 3000 square metres,” explained Mr Follacchio.
On the topic of setting the growing number of vehicle storage facilities apart from one another, Mr Follacchio said it was important potential clients choose a location and business that understands the needs of them and their vehicle, and to factor in not only cost, but security, insurance, access, and support.
“It’s also important to look at the level of cover specific to your needs,” he advised.
“Some facilities are literally just a place to park your car, while others really go out of their way to make sure the car – and the customer – are given the best experience possible.”
Mr Follacchio said that in addition to his obsession with cars and motorcycles, entering the business of vehicle storage had come at a time when collectors and enthusiasts are finding it particularly difficult to find an appropriate location to house their valued car or motorcycle.
“As an enthusiast, and talking to other enthusiasts daily, you begin to appreciate how the modern way of life in a capital city really isn’t conducive to owning multiple vehicles, especially those you might only use on a monthly basis, or less,” he said.
“Housing blocks and garages are becoming smaller, and apartments usually only provide parking for one or two vehicles – and often in shared facilities where security isn’t always front of mind.”
Mr Follacchio said he and the Benzina Stables team quickly pivoted to offer not only secure storage with a concierge touch, but a separate environment in which owners could show – and even sell – their vehicles, enjoy a coffee and a chat, or host special events.
“The original plan was heavily focused on storage alone, but over time, our customers told us they wanted more – and with almost all of our customers being enthusiasts, it wasn’t hard to start morphing this into an enthusiast-focused space., he said.
“When the plans come to fruition, in about 12 months’ time, we’ll have space for around 240 cars in storage at any given time, utilising stackers, and what we’re looking to call our wall of (motor) bikes.
“We’re aiming to have around 120 cars, on longer-term or laid-up storage, stored in stackers with the remainder on the floor, ready for customer use.
“That leaves us without around another third of our floor space for sales stock, preparing collectors cars for storage or transportation, an in-house detailing bay, a food and beverage area and a lounge and office space.”
At Mr Follacchio’s facility, customers’ needs are assessed based on the regularity of vehicle use, access times and just how they require their vehicles to be cared for.
“It really is very difficult to pinpoint the average owner. Many are successful business owners, while others are employees in a well-paid job. But ultimately, they’re all enthusiasts. We have clients ranging in age from 19 to over 70 and with cars from a Ford Escort RS2000 through to a Ferrari Portofino or Lamborghini Aventador,” he explained.
“It’s great to see the variance in people’s interest levels come together under the one roof, and even more special to see that most of these guys and girls own more than one car.”
Mr Follacchio told GoAuto that customers can be reserved, asking for closed transport to move vehicles from one event to the next, through to those who choose to “celebrate” their car by asking for it to be displayed in sight of other customers.
“We don’t allow anyone to access the storage area. Customers enter the ‘airlock’ where their car is assessed and photographed before a Benzina Stables staff member drives the car through the door,” he detailed.
“This not only stops customers from seeing what else is ‘out there’ but helps to mitigate any risk of driving on polished concrete and around other vehicles.
“From there, a vehicle is parked and placed on to a trickle charger. Some customers want their vehicles cleaned and detailed, and covered, while parked. Others don’t. It’s important that we respect a client’s wishes, because not every car or bike is the same.
“Similarly, we can offer everything from a full-service package right down to secure storage only. A track day client is very different from a collector, for example, so being able to facilitate those different needs is a big part of what sets us apart.
“We’re always happy to work through any requirement a customer might have. We’re car people too, and we understand how important it is to get these things right.”
Keyword: Vehicle storage is big business