Real Estate Heavyweights Fight It Out For £1B Self-Storage Platform
Several private equity firms, sovereign wealth funds and listed companies are bidding to buy a UK self-storage company in what will be one of the biggest UK real estate deals of the past five years.
TPG, Aermont, QuadReal Property and Shurgard are among the bidders for Access Self Storage, Sky News reported. The company appointed JPMorgan Chase last year to find a buyer for the company, valued at about £1B.
Access has more than 60 sites across the UK, making it one of the largest self-storage owners in the UK. Listed firms Big Yellow and Safestore are the UK's largest self-storage firms, with market capitalisations of £1.9B and £1.3B, respectively.
Self-storage is a niche real estate sector in the UK, but it is seen as having big potential for growth. The sector is valued at about £12B today. It could grow to more than £30B, according to a report last year from law firm Macfarlanes.
Real estate players want to get into the sector now because it is fragmented. The presumption is that larger players will consolidate smaller owners, as has been the case in the U.S.
Aermont is best known as the owner of film studio company Pinewood Group, while Canadian QuadReal has been a big investor in logistics and living assets in the UK.
Shurgard is listed in Belgium. It bought UK firm Lok’nStore last year for £380M.
