StorageVault Canada Inc., owner of Canadian PUPS (portable units, portable storage) Inc., has entered an agreement to proceed with a proof-of-concept trial at Conundrum Capital Corp.’s self-storage facility in Kanata, Ontario. The trial will conclude on Dec. 31 unless mutually extended in writing.
As part of the agreement, Conundrum will fund the trial and pay for the portable-storage containers used. It has also agreed to pay StorageVault a 5 percent management fee and a 3.5 percent franchise fee on PUPS revenue.
To evaluate the trial, the parties developed a business plan with measurable benchmarks. If the trial is successful, the companies will enter a funding/investment arrangement to allow the acquisition of self-storage facilities in major Canadian markets and a rollout of PUPS at those locations. If the trial fails, StorageVault can repurchase the containers from Conundrum at a discount.
StorageVault also owns and operates Trans Can Mini-Stor in Regina, Saskatchewan, and Kenaston Self Storage in Winnipeg, Manitoba. Both facilities operate in conjunction with PUPS portable-storage franchises.Conundrum is a private equity management firm focused on delivering real estate investments that meet the needs of major pension plans, financial institutions and high-net-worth investors.