Swiss Life sets sights on doubling £130m UK self-storage fund

Swiss Life Asset Managers UK aims to double its self-storage fund to £260m by the end of this year. The insurer-owned asset manager’s existing UK self-storage fund holds £130m of investments, mainly located in the North West of England. It will aim to double this through an equity raise. Factors driving its target raise are thought to include e-commerce growth dynamics, with higher inventories and scarcity of stock boosting rental growth prospects. The move is understood to form part of the investor’s aim to increase its exposure to industrial, logistics and related alternatives. The asset manager’s real estate investment portfolio across Europe is 32% residential, 29% office, 14% industrial, 13% retail, and 12% other sectors, including hotels and healthcare properties. In recent years, Swiss Life has described self-storage as a “compelling investment opportunity”, on the back of structural challenges in the retail market. The asset manager made its self-storage debut in 2021, when its UK arm Mayfair Capital bought The Storage Team. The transaction included properties in St Helen’s, Widnes and Wigan, with subsequent deals taking its site count to eight. The merged entity said it would focus its expansion efforts on the East, the Midlands and the North regions. During the past year, Swiss Life opened three new sites by repurposing obsolete industrial buildings. The latest store opening was in Corby, Northamptonshire. Mayfair Capital rebranded as Swiss Life Asset Managers UK last year. Photo © Joshua Coleman/Unsplash