Schroders Capital has launched a UK self storage investment platform after securing £100m (€114.4m) from a group of investors, including UK local government pension schemes (LGPS).
The private markets arm of asset manager Schroders said The Self Storage Partnership has launched with the initial investment from existing institutional and wealth clients, including LGPS investors and the Schroders Capital Semi-Liquid Global Real Estate Total Return Fund.
The Self Storage Partnership, which will acquire and develop properties, will also explore additional opportunities to generate new revenue streams, such as through the creation of dedicated management teams to run the assets and further enhance enterprise values, the manager said.
The platform has already acquired eight modern, purpose-built facilities primarily concentrated in Greater London and other strong regional centres. The portfolio also includes a prime development site, Schroders Capital added.
Kieran Farrelly, global CIO for real estate, Schroders Capital, said: “Today’s launch of The Self Storage Partnership marks a major milestone for our real estate business as we continue to drive specialist entrepreneurial strategies that align with today’s changing capital needs and maximise value.
“As real estate allocations shift from traditional sectors to operational assets, we see self storage as an attractive opportunity to deliver ‘pass-through’ inflation-linked cash flows while achieving superior risk-adjusted returns. The sector’s growth, driven by key demographic shifts and market dynamics, presents an exciting opportunity for our existing and prospective investors.”
Matthew Baddeley, lead asset manager, Schroders Capital, said: “Our self storage platform has launched with a portfolio of resilient, income-producing assets, as we look to deliver resilient, long-term value for our investors. Two of the facilities we acquired earlier this year in Southport and Gloucester are great examples, which added approximately 110,000sqft of lettable area to the portfolio.
“Both assets are EPC A-rated, with Nokē systems, EV chargers, PV panels and batteries installed. Our expertise in active management and operational real estate means we are well-placed to further capture the opportunities emerging from the sector’s expected growth; we look forward to growing our exposure and building on this momentum.”
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