Schroder UK Real Estate Fund has entered the self-storage market with the acquisition of a £44m portfolio from the Self Storage Company.
The fund said it sees potential to increase the size of the 230,000 sq ft portfolio, which has five assets around London and the M25, because of evolving demographic trends in highly urbanised areas.
It said it is tapping into the changing nature of millennials’ living patterns, including the growth in demand for rental accommodation, and growing demand from start-up businesses.
James Lass, fund manager of Schroder UK Real Estate Fund, said: “The growth in demand for self-storage is inextricably linked to key demographic trends that are driving demand for real estate.
“This acquisition fits perfectly with our strategy for investing in areas of the market that are well placed to benefit from the structural themes that will drive returns going forward and in winning cities where GDP growth should be significantly higher than the average.”
Schroder UK Real Estate Fund was unrepresented. JLL represented the Self Storage Company.
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