Key Takeaways
- • Schroders Capital launched The Self-Storage Partnership, a £100 million ($133 million) self-storage investment platform backed by institutional and wealth management clients, including UK local government pension schemes (LGPS).
- • The platform acquired eight self-storage facilities across the UK, including two newly acquired properties in Southport and Gloucester representing approximately 110,000 square feet of lettable area, with an additional site reserved for future development.
- • Investors access the opportunity through a private real estate investment trust (REIT) structure, combining real estate acquisition and development with long-term, asset-backed capital deployment and value-generation strategies.
- • Matthew Baddeley, lead asset manager, emphasized the platform's focus on "resilient, income-producing assets" while Kieran Farrelly, global chief investment officer for real estate, positioned the launch as a milestone for specialist, entrepreneurial real estate strategies aligned with evolving capital needs.
- • The strategy prioritizes active management and operational expertise to capitalize on structural growth opportunities in the self-storage sector, with plans to expand the portfolio and explore additional revenue-generation opportunities.
Summary
Schroders Capital, the alternative asset management division of Schroders PLC, has launched The Self-Storage Partnership, a £100 million self-storage investment platform designed to capitalize on structural growth in the UK self-storage sector. The platform was seeded with capital from a consortium of institutional investors and wealth management clients, including UK local government pension schemes (LGPS), positioning it to serve sophisticated, long-term capital allocators seeking diversified real estate exposure.
The platform's initial portfolio comprises eight self-storage facilities across the UK. Two properties acquired earlier in 2025—located in Southport and Gloucester—added approximately 110,000 square feet of lettable area to the portfolio. The platform also secured a development site for future expansion, indicating a growth-oriented acquisition strategy. According to Matthew Baddeley, lead asset manager, the portfolio was selected to deliver "resilient, income-producing assets" with long-term value generation as the primary objective.
The investment structure utilizes a private REIT framework, allowing institutional and wealth clients to gain exposure to self-storage assets through a tax-efficient, professionally managed vehicle. The platform's strategy combines traditional real estate acquisition and development with operational management and active value creation. Schroders intends to leverage its expertise in asset management and operational real estate to identify and capture opportunities emerging from expected sector growth while exploring additional revenue streams beyond rental income.
Kieran Farrelly, global chief investment officer for real estate at Schroders Capital, characterized the launch as "a major milestone" for the firm's real estate business, signaling the company's commitment to specialist, entrepreneurial strategies that align with evolving institutional capital needs. The platform's competitive positioning rests on Schroders' operational capabilities and active management philosophy, combined with the sector's structural tailwinds driven by evolving consumer preferences and supply-demand dynamics in self-storage markets.
The platform's initial portfolio comprises eight self-storage facilities across the UK. Two properties acquired earlier in 2025—located in Southport and Gloucester—added approximately 110,000 square feet of lettable area to the portfolio. The platform also secured a development site for future expansion, indicating a growth-oriented acquisition strategy. According to Matthew Baddeley, lead asset manager, the portfolio was selected to deliver "resilient, income-producing assets" with long-term value generation as the primary objective.
The investment structure utilizes a private REIT framework, allowing institutional and wealth clients to gain exposure to self-storage assets through a tax-efficient, professionally managed vehicle. The platform's strategy combines traditional real estate acquisition and development with operational management and active value creation. Schroders intends to leverage its expertise in asset management and operational real estate to identify and capture opportunities emerging from expected sector growth while exploring additional revenue streams beyond rental income.
Kieran Farrelly, global chief investment officer for real estate at Schroders Capital, characterized the launch as "a major milestone" for the firm's real estate business, signaling the company's commitment to specialist, entrepreneurial strategies that align with evolving institutional capital needs. The platform's competitive positioning rests on Schroders' operational capabilities and active management philosophy, combined with the sector's structural tailwinds driven by evolving consumer preferences and supply-demand dynamics in self-storage markets.
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