Legal & General makes debut self-storage deal

Legal & General Investment Management’s (LGIM) real asset division has made its debut UK self-storage sector deal with the acquisition of a 140,000 sq ft portfolio.

It has bought the Iron self-storage portfolio through its UK property fund. The deal includes a site next to the A5 south of Cannock as well as facilities in Northwich and Bolton.

The three sites have recently been launched by SureStore and provide a mix of self-storage space, trade counter units and co-working office space.

Matt Jarvis, senior fund manager of the UK Property Fund at Legal & General, said: “In line with our strategy, this latest acquisition provides a platform of assets within the self-storage sector where the fund will benefit from the expertise that the management agreement with SureStore will provide.

“The high-quality, purpose-built properties are also in early stages of operation which should mean we see a growth in income as they reach a stabilised level.”

LGIM’s UK Property Fund now stands at £3bn and has increasingly invested in a range of alternative assets such as build-to-rent, hotels, healthcare, student accommodation and now self storage.

JLL’s Tom Caines added: “Investor demand has grown strongly in the past 18 months, especially for new build stock of this grade.”