Compound Real Estate secures £11m for self-storage facility

Cain International has provided an £11m loan via its Fortwell credit strategy to Compound Real Estate to fund the construction of a 65,000 sq ft self-storage facility in Milton Keynes. Located in the city’s top retail park, this grade-A development will feature Milton Keynes’ first fourth generation, newly built, ESG-positive self-storage facility. The financing marks Cain’s first venture into the self-storage sector. Compound is a UK-based private self-storage developer, with a development pipeline of 500,000 sq ft across London and the South East.  The new facility will feature 868 storage units, including ground-level “drive-up” units for convenient access, with sizes ranging from 10 sq ft to 1,000 sq ft. The project’s ESG credentials include aiming for BREEAM Excellent certification and net zero carbon status. James MacAlpine, associate in real estate credit at Cain International, said: “As the UK market experiences strong growth in this area, this new partnership is a natural fit for our commitment to supporting high-quality sponsors in sectors with strong market fundamentals.” Jacob Sandelson, founding partner at Compound Real Estate, said: “Cain’s support is essential as we scale our operations and expand into further key markets, driving towards our goal of building one of the largest privately held self-storage portfolios in the UK. “This development also reflects our core priorities – exceptional design, customer centricity, strong ESG standards and operational excellence.”  Brotherton, Archor and Freeths advised Compound; Blake Morgan, CBRE and Colliers advised Cain. Image courtesy of SEC Newgate