LGIM Real Assets Buys Two Self Storage Assets in Bury and Lichfield

LGIM Real Assets has bought two purpose built operational self storage assets in Bury and Lichfield, providing over 92,000 sq ft of combined lettable space.

The self storage sector in the UK has grown significantly in recent years, and today it makes up 41% of the European self storage market . Recent findings, quoted by LGIM, show that whilst there are now approximately 1,900 self storage sites in the UK , only 35% of these are purpose built.

Since entering the market last year, LGIM Real Assets has expanded its self storage portfolio with operational assets in Cannock, Northwich, Bolton, Stafford, Bury and Lichfield, and development sites in Wokingham and York. Today, its portfolio exceeds 365,000 sq ft of assets in operation or development, with ambitions to deliver a further 270,000 sq ft by 2022.

Across the Real Assets operational portfolio, occupancy has remained in line with the business plan throughout the coronavirus pandemic, LGIM said, with enquiries and lettings reverting to pre Covid levels by Q3 2020.

Michael Barrie, Director of Fund Management, LGIM Real Assets, said in a statement: “Led by our in-house self storage experts Jessica Cunningham and Matthew Lilley, we continue to look for opportunities to acquire operational facilities and development sites, alongside repurposing underutilised assets within our own real estate portfolio. Recent development plans include; repositioning prominent industrial sites, partial repurposing of retail parks and progressing mixed use self storage anchored schemes. Together, these are expected to provide resilient and diversified income streams on assets across multiple funds, further enhancing our portfolio.”

At present, all of Legal & General’s operational self storage assets are managed by Surestore.

The acquisition of the SureStore self storage assets in Bury and Lichfield were made by Legal & General’s Industrial Property Investment Fund (IPIF), which is valued at over £2.3bn and specialises in multi-let industrial and trade assets alongside its growing self storage portfolio. Bury and Lichfield will continue to be managed by Legal & General’s storage partner SureStore Management Services.

JLL brokered the sales in Bury and Lichfield, taking the total assets within the Surestore pipeline sold to six.

ssmyth@costar.co.uk