Schroders Capital launches €114m self-storage platform

Schroders Capital has unveiled "The Self Storage Partnership," a new investment platform dedicated to self-storage. 

This initiative builds on their existing expertise in operational and value-add real estate, including prior self-storage investments since 2017 and a substantial hotel platform.
The platform has launched with over £100 mln (€114 mln) in initial investments from institutional and wealth clients, including pension funds. It will operate as a private REIT, allowing for efficient growth.
Schroders Capital identifies a strong opportunity in the UK self-storage market, which has less available space per person compared to more developed markets like the US and Australia, but high demand and many smaller operators. The Self Storage Partnership aims to capitalize on this by creating a leading UK self-storage operating platform. It will combine real estate investment returns with a private equity approach, focusing on operational expertise to create long-term value.
This strategy involves acquiring and developing properties, as well as exploring new revenue streams, such as establishing dedicated management teams for the assets. The platform has already acquired eight modern, purpose-built facilities in Greater London and key regional centres, along with a prime development site, and is actively considering further acquisitions to quickly scale up.
Kieran Farrelly, global CIO for Real Estate, Schroders Capital, said: “Today’s launch of The Self Storage Partnership marks a major milestone for our real estate business as we continue to drive specialist entrepreneurial strategies that align with today’s changing capital needs and maximise value. “As real estate allocations shift from traditional sectors to operational assets, we see self-storage as an attractive opportunity to deliver ‘pass-through’ inflation-linked cash flows while achieving superior risk-adjusted returns. The sector's growth, driven by key demographic shifts and market dynamics, presents an exciting opportunity for our existing and prospective investors.”
Matthew Baddeley, lead asset manager, Schroders Capital, added: “Our self-storage platform has launched with a portfolio of resilient, income-producing assets, as we look to deliver resilient, long-term value for our investors. Two of the facilities we acquired earlier this year in Southport and Gloucester are great examples, which added approximately 10,219 m2 of lettable area to the portfolio. Both assets are EPC A-rated, with Nokē systems, EV chargers, PV panels and batteries installed. Our expertise in active management and operational real estate means we are well-placed to further capture the opportunities emerging from the sector’s expected growth; we look forward to growing our exposure and building on this momentum.”