LGIM Real Assets has made its maiden acquisition into the self-storage sector, purchasing the Iron self-storage portfolio for an undisclosed amount.
The portfolio includes three brand new facilities located in Cannock, Northwich and Bolton, providing 140,000 ft2 (13,000 m2) 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 fund has had a strong focus on investing in operational real estate such as hotels, BTR and self-storage,' said Matt Jarvis, senior fund manager of the UK Property Fund at Legal & General.
'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,' Jarvis added.
Tom Caines, of JLL's alternative investment division added: '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.'
The acquisition has been made on behalf of LGIM's UK property fund. Since its launch in 2006, the fund has grown from £100 mln (€109 mln) to over £3 bn today, the firm said.
JLL brokered the deal.