Legal & General diversifies holdings with debut self-storage deal
Legal & General Investment Management’s (LGIM) real asset division has made its debut UK self-storage sector deal with the acquisition of a 140,000sqft portfolio.
LGIM Real Assets, on behalf of its UK Property Fund, has bought the Iron self-storage portfolio, which includes three facilities located in Cannock, Northwich and Bolton.
The facilities will be managed by SureStore Management Services.
Legal & General said the stores combine traditional self-storage space, with glass-fronted trade counter units for retail customers as well as co-working office space and external drive-up units.
Since its launch in 2006, the UK Property Fund has grown from £100m to over £3bn today as it continues to see steady capital investment from retail investors.
Legal & General said the fund continues to diversify its holdings into more operational and alternative assets such as its recent investments into build-to-rent, hotels, healthcare, student accommodation and now self-storage.
Matt Jarvis, senior fund manager of the UK Property Fund at Legal & General, said: “In line with our strategy, this latest acquisition provides a platform of assets within the self-storage sector where the Fund will benefit from the expertise that the management agreement with SureStore will provide.
“The high-quality, purpose-built properties are also in early stages of operation which should mean we see a growth in income as they reach a stabilised level.”