LGIM Real Assets (Legal & General) has announced that it has made its first acquisition into the self storage sector, with the landmark acquisition of the Iron self storage portfolio.
The portfolio includes three brand new facilities located in Cannock, Northwich and Bolton, providing 140,000 sq. ft. of lettable space. The facilities will be managed by SureStore. Management Services. 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.
The acquisition has been made on behalf of its UK Property Fund (“The Fund”). Since its launch in 2006, the Fund has grown from £100m to over £3bn today as it continues to see steady capital investment from retail investors. The Fund continues to diversify its holdings into more operational and alternative assets such as its recent investments into Build-To-Rent (BTR), hotels, healthcare, student accommodation and now self storage.
Matt Jarvis, Senior Fund Manager of the UK Property Fund at Legal & General, said: “The Fund has had a strong focus on investing in operational real estate such as hotels, BTR and self storage. 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.”
Tom Caines, Alternative Investment at JLL, commented: “It’s fantastic to see the continued trend of institutional funds investing in the self storage sector. Investor demand has grown strongly in the past 18 months, especially for new build stock of this grade. The key to this transaction was ensuring the deal was structured to include a ready-made management team, and we were delighted to achieve a result that suited all parties.”
Andy Wood, of SureStore Management Services commented: “We look forward to managing these assets on behalf of Legal & General moving forwards, and are excited to be working alongside them as they grow their new platform.”
