Gunpowder Capital Corp., announced today that its fully owned subsidiary GP Self Storage has completed its first acquisition. The Corporation has acquired a fully automated storage facility in Madoc Ontario for the purchase price of $299,000.00 CDN. The property was secured by making a payment of $150,000.00 CDN. The remaining balance was financed by a large Canadian financial institution with a 15 year mortgage bearing interest at 4.1% per annum. Revenue generated from the facility is approximately $33,000.00 per annum.
The technological system in the facility is fully automated and handles payments, booking, access & security. GP Self Storage is currently looking at other facilities with a goal to rolling out the automated platform to achieve purchase synergies.
The Corporation, after conducting and completing its due diligence, has decided not to pursue the second storage facility it was considering acquiring as stated in its July 6th, 2016 press release.
Mr. Paul Haber stated: "We are very pleased to have completed our first self storage acquisition. This acquisition compliments our recent real estate purchase and provides hard assets and consistent cash flow against our merchant banking business which can be more cyclical in nature. We continue to look at expanding both of this operations as well as additional business lines that may benefit our stakeholders."