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Shipping Container Buy2Let

  • Status:
  • Property type:
  • Listing type: Projects & Development Sites

Property Description

What We Do?

Innocontainer leases shipping containers owned by individuals and rents them to the shipping industry.

Innocontainer aims to increase its container operating fleet, via container owner clients’ acquisition of containers. Innocontainer will then lease and operate the containers after the purchase.  We will then pay rental to the owner equal to 30% of the net income and retain 70% for  Innocontainer.  Under the fixed rent lease, we pay a defined rent equal to 12% of the purchase price of the container.  Innocontainer (stipulated in contract article 5) will buy back the containers at the price the container owner paid as long as the container is leased to  Innocontainer for 3 years or more.

This model enables Innocontainer to buy back containers from income the container has already generated, rather than from capital reserves.  From the point the container owner decides to sell, Innocontainer will continue to operate the container and earn 100% of the revenues.

What does it cost to get started?

USD 4,100 is the cost of one 40-foot container.  (£2,535 at 1 GBP = 1.61790 USD)

Preservation of Capital

1.  Containers depreciate over time but because we receive the larger share of the revenue  Innocontainer assumes the depreciation and agrees to purchase your containers from you at the price you paid for them, if you lease them to us for a period of 3 years or more. (being not more than the price at which we have offered to sell a container to you).

2.  When we rent out your container, the usual term in the shipping industry is that the renter must keep it fully insured against loss and damage, therefore your capital is insured in accordance with the contract of insurance.

The Risks

When you own a (physical) container, given that it is insured, there is little risk to your capital investment. 90% of everything that is transported is transported in containers; therefore demand for containers is permanent, although market conditions will constantly change.

A full list of risks we can think of is set out in our Information Memorandum.

Performance

Here’s a look at our returns for the last 11 years. (The returns under the aggressive lease vary from owner to owner; the figures in this table for the aggressive lease are averages of the returns derived by all owners.)

Performance Year Fixed Rent Lease Aggressive Lease
2013 12% 26.07%
2012 12% 26.03%
2011 12% 39.63%
2010 12% 37.9%
2009 12% 18.07%
2008 12% 23.02%
2007 12% 32.39%
2006 12% 31.02%
2005 12% 28.86%
2004 12% 27.93%
2003 12% 24.60%

Total annual return for the last 11 years from the fixed rent lease 132%

Average annual return for the last 11 years from the Aggressive plan ­­­­­­­28.68%

Total average return for the last 11 years from the Aggressive plan 315.52%

Now, if all of this looks good to you, the next thing to look at is how to get started.

Payment of Income 

If you lease us 5 containers or more you will receive your income monthly, on the 23rd day of every month, together with an income statement and a statement of account.

If you lease us fewer than 5 containers you will receive your income quarterly, paid on the 23rd day of the next quarter.

Due Diligence

We have included more detailed information in our due diligence pack.

If you would like a due diligence pack, please email or call your local branch.

Owning and leasing a container can be compared with owning and leasing a house:

House 5 Shipping Containers 25 Shipping Containers
You buy an apartment for $100,000 USD

 

You buy five shipping containers for $20,500 USD You buy twenty-five shipping container for approximately $100,000 USD ($102,500)
House performance:

(based on average)

6%

 

Container performance:

(average aggressive lease return)

28%

 

Container performance:

(average aggressive lease return)

28%

 

You would receive

$500 USD a month

You would receive

$478 USD a month

 

You would receive

$2391 USD a month

 

You would receive

$6000 USD a year

 

You would receive

$5740 USD for the year

 

You would receive

$28700 USD for the year

 

You can sell your property for more or less than what you paid, depending on the market. You may make a capital gain or loss. We will buy your containers for the purchase price applicable to them. We will buy your containers for the purchase price applicable to them.

 

Additional Features

Gavin Tokely

Contact Agent

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