Singapore wealth fund targets £1bn takeover of UK self-storage chain

Singapore’s sovereign wealth fund is poised to deepen its exposure to UK real estate with a deal to acquire Access Self Storage for more than £1 billion, underlining continued international appetite for British property assets despite a volatile macroeconomic backdrop.

The transaction is being led by CapitaLand, part of the Temasek portfolio, and represents one of the largest recent moves into the UK’s self-storage sector. While final documentation is yet to be signed, the agreed price is understood to be just over £1 billion.

The deal, if completed, would deliver a significant windfall to the Lalji family, which owns Access Self Storage through its investment vehicle Precis Advisory. The business has been on the market for more than a year, with advisers at JP Morgan overseeing the sale process.

Founded more than 20 years ago, Access Self Storage operates 57 sites across the UK, with a strong concentration inside the M25. Although its most recent annual revenue stood at £27.9 million, down slightly year-on-year, the company’s appeal lies primarily in its property holdings.

Industry insiders note that Access owns the freehold on the majority of its sites, significantly enhancing its underlying asset value and making it attractive to long-term investors seeking stable, income-generating real estate.

That asset-backed model helps explain the premium valuation, which some analysts had previously questioned when measured against revenue alone.

Despite agreement in principle, bankers involved in the process are said to be cautious, given the current geopolitical and economic environment. Rising borrowing costs, exacerbated by instability linked to the Middle East conflict, could still threaten the completion of the deal.

CapitaLand declined to comment on the transaction, citing a policy of not responding to market speculation.

The proposed acquisition reflects a broader trend of overseas investors targeting the UK self-storage market, which remains relatively underdeveloped compared with more mature markets such as the United States and Australia.

According to industry data, the UK currently offers just 0.89 square feet of self-storage space per person, compared with more than 7 square feet in the US, a gap that investors believe presents significant long-term growth potential.

Recent activity in the sector reinforces that view. In 2024, Shurgard acquired Lok’nStore in a deal worth around £380 million, while Blackstone explored a £2 billion-plus takeover of Big Yellow before talks collapsed late last year.

For Temasek, the move aligns with its strategy of investing in high-quality, income-generating assets in stable markets. The UK’s property sector, despite recent headwinds, continues to attract sovereign wealth capital due to its transparency, liquidity and long-term demand fundamentals.

The acquisition would also strengthen CapitaLand’s global portfolio, adding a foothold in a niche but expanding segment of the real estate market.

If completed, the deal would signal renewed confidence in UK commercial property from international investors, even as domestic conditions remain challenging, and further highlight the growing strategic importance of alternative asset classes such as self-storage in global investment portfolios.

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Singapore wealth fund targets £1bn takeover of UK self-storage chain