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News Release

London

JLL advises on the sale of The Self Storage Company to Schroders’ real estate fund – the first institutional acquisition

The transaction of over £44 million represents the first time that an institution has directly invested in the UK self storage sector


​​Schroder UK Real Estate Fund ("SREF") has completed the acquisition of The Self Storage Company for over £44m. The investment is the first time that an institution has directly invested in the sector, which included the acquisition of The Self Storage Company brand and other intellectual property.

 The portfolio consists of five prime assets in the London area, totalling in excess of 230,000 sq. ft. of self storage space. The stores at Apex Corner, Hemel Hempstead, West Molesey and Welwyn Garden City are new purpose built assets, with the store at Waltham Abbey being a prominent conversion fronting the M25 motorway.

 Apex Corner and West Molesey opened in the summer of 2017 and there are plans to further expand the portfolio through development of new stores and selective acquisitions of existing self storage facilities.

James Lass, fund manager at SREF, said: "The growth in demand self-storage is inextricably linked to key demographic trends that are driving demand for real estate. This acquisition fits perfectly with our strategy for investing in areas of the market that are well placed to benefit from the structural themes that will drive returns going forward, and in winning cities where GDP growth should be significantly higher than the average. The way we use space is changing like never before, and consumers are now increasingly looking for flexible storage, in response to shifting demographic trends, for a variety of different reasons."

 Emil Sohrab, chief executive of The Self Storage Company, added: "We are delighted to be forming such a strong team with Schroders – combining our mutual experience with a view to becoming one of the UK's largest self-storage platforms."

Ollie Saunders, Lead Director, Alternatives at JLL, added: "The transaction shows the continuing interest in self storage from a variety of different investors. The portfolio was particularly attractive as it is a high quality group of predominantly freehold assets, in strong locations across Greater London.     There have now been over £200m of transactions in the last year in the sector in the UK alone, and to new sources of capital such as US investor StorageMart, which acquired Big Box Self Storage for more than £100m in October 2016 and now Schroders."

 

JLL acted for The Self Storage Company.