Real estate investment firms launch £100m self-storage partnership
Two real estate investment firms have teamed up to launch a £100m self-storage joint venture, as investors target alternative properties amid uncertainty for office and retail assets.
UK-focused real estate fund manager Moorfield Group has entered into a partnership with Stor-Age, a South African self storage Real Estate Investment Trust, which owns Storage King.
The joint venture, with Moorfield as the majority investor, aims to build an initial £50m to £100m portfolio of self-storage assets in the UK, with a focus on London and the South East.
It is already in advanced discussions on a number of acquisitions.
The self-storage sector, which has been growing at around 6.5 per cent a year since 2005, has been “one of the more resilient since the outbreak of the Covid-19 pandemic,” the companies said.
European rent collection in the sector has outperformed other real estate asses, such as logistics, retail and offices.
The sector is also positioned to service and support commercial customers as the structural shift from traditional bricks and mortar retail continues, accelerated by the coronavirus crisis.
Moorfield chief executive Marc Gilbard said: “Self storage as an asset class has been one of the more resilient during this period of uncertainty and is set to benefit from a number of favourable structural trends, and with a strong pipeline of assets already identified, we are excited to be launching this latest venture on behalf of our investors.”
Steven Horton, executive director of Stor-Age, added: “The UK self storage industry presents a significant and attractive growth opportunity and we remain encouraged by the consistent performance of the Storage King business this year, despite the backdrop of uncertainty and a muted economic environment as a result of COVID-19.”