Global real estate investment management firm Heitman has struck deals for three new sites across the UK that will be developed or converted into self-storage facilities as part of the Space Station platform.
The expansion acquisitions were made on behalf of an affiliate of Heitman. Through its initial acquisition of the Space Station platform in late 2020 and continued acquisitions to expand the platform, Heitman has added further storage density in key target regions of the country including Birmingham and Yorkshire.
The deals include the forward-funding of a 62,000 ft2 (5,760 m2) self-storage facility on a main road leading into Birmingham city centre which will become Space Station Stirchley.
A 42,000 ft2 self-storage facility with direct visibility to Chester Road will be converted into Space Station Castle Bromwich. Heitman also acquired a Hall Green site through a direct sale, which will be redeveloped into a 61,000 ft2 self-storage facility.
'We’ve already experienced significant value uplift across our European self-storage holdings and are pleased to continue to aggregate high-quality, strategically located UK self-storage assets for the Space Station portfolio,' said Caleb Mercer, Heitman managing director of European real estate investment.
'We remain acquisitive and will continue to strategically add assets to the portfolio as we believe there is significant opportunity to create value while benefiting from the growth of this still developing European sector.'
The sites will be developed to high-quality storage specifications and operated under the Space Station banner, targeting ESG credentials in line with Heitman’s 2030 net-zero carbon goal.
'We have long-focused our European efforts on the region’s alternative sectors – specifically self-storage, senior housing, student living, and rented-residential – given their diverse and unique set of demand drivers that are delinked from broader economic cycles,' said Tony Smedley, Heitman managing director and head of European private equity.
'Strategically, we are focused on investing in assets that combine growth potential with competitive risk-adjusted returns. Given the relative nascency of the specialty sectors in Europe, we believe the region offers a compelling combination of resilient cash flows, demographic driven growth, and continued institutionalization of these more niche asset classes,' Smedley added.
'The Heitman investment into Space Station has created an excellent partnership, combining market-leading sector knowledge with operational excellence,' said Kevin Prince, CEO of Space Station.
'These latest acquisitions fit perfectly into our expansion strategy but represent just a small portion of our pipeline. We intend to continue growing the platform through development of land, conversion of existing, suitable warehouses and adding trade acquisitions where we believe it to be appropriate.'
