Stor-Age and Moorfield announce UK-focused joint venture
Stor-Age and Moorfield have form a R1.1 billion self-storage joint venture.
Stor-Age announced on 21 October that it has entered into a new R1.1 billion joint venture (JV) with UK real estate fund manager Moorfield Group to develop a portfolio of self-storage assets in the UK.
Stor-Age which already has an extensive portfolio of storage property assets in South Africa and the UK, said in a statement that, “The UK-focused development JV, which provides Stor-Age with a significant platform to execute its strategic growth plans in the UK over the medium-term, will enable the company to develop a portfolio of self-storage assets, focused on London and the South East of England.”
Stor-Age’s UK property growth strategy includes acquiring existing, trading self-storage properties from third parties and new developments. It has also established Management 1st, a comprehensive third-party management solution for independent operators, developers, and private equity owners in the UK.
All properties in the JV will be branded and managed by Storage King as part of Management 1st. Stor-Age CEO Gavin Lucas says that the group is delighted to have agreed final terms with Moorfield. “We look forward to developing and assembling a portfolio of high-profile self-storage properties in prime locations in the UK.
“The UK market represents an exciting growth opportunity and by partnering with Moorfield, we are now both well placed to achieve our multi-year strategic growth objectives together,” he added.
Moorfield has a 25-year track record of investing across most UK real estate sectors. Commenting on the deal, Moorfield CEO Marc Gilbard described Stor-Age as “a best-in-class partner” whose operational and origination expertise would enable Moorfield to both access the self-storage sector and then scale up its portfolio.
According to Stor-Age, Moorfield is “well known as a vanguard investor in emerging sectors”, having pioneered investment in student accommodation, the build-to-rent market and developments focused on senior living.
In a business update ahead of the announcement, Stor-Age reported that in the six-month period ending September, it was sitting with a 96 percent and 98 percent collection rate on rental due in South Africa and the UK respectively.