Downsizers and renting millennials see Schroders move into self-storage

Downsizing baby boomers and young people who cannot afford their own home have increased demand for self-storage units, prompting Schroders to invest for the first time.

The investment manager’s UK real estate fund has bought British firm the Self Storage Company, along with its five existing self-storage units, for £44m as it looks to get a foothold in an increasingly buoyant market.

Schroders will retain the firm’s management team to run the existing sites, which are all in the M25 area, and plans to expand the number of sites it has in the next few years, it said. It adds that it sees the sector as “a major growth opportunity”.

The expansion of the self-storage market is largely viewed as a response to evolving demographic trends, particularly in urban areas such as Greater London.

The changing nature of younger people’s living patterns, such as an increase in demand for rental accommodation, added to a growing desire among older people to downsize, has meant more people seeking extra storage for their belongings.

Self-storage has also been boosted by demand from start-up businesses and online retailers.

Emil Sohrab, chief executive of the Self Storage Company, said: “[We are] combining our mutual experience with a view to becoming one of the UK’s largest self-storage platforms.”