JLL advises on Heitman’s investment into largest Irish self storage platform

JLL has advised Heitman LLC (‘Heitman’), a global real estate investment management firm, in its investment into U Store It, an Irish and Northern Irish self-storage business with six existing locations across four cities: Dublin, Belfast, Cork, and Waterford. As part of the investment, Heitman will work with the existing local owners to develop two additional sites in Dublin and Belfast. Heitman’s investment was made in connection with its global investment strategy.

In both its advisory and research capacities, JLL has recorded the self storage sector’s consistently robust performance across Europe over recent years, with strong occupancy and rental levels, and a continuing growth in supply. JLL’s research capabilities enabled them to compare the Irish market to other European cities to underpin assumptions. Reflecting activity across Europe, the self-storage market in Ireland is benefiting from shifting demographic trends. Space is in high demand from a number of users – such as for home overflow space or those downscaling – and from start-up businesses and online retailers requiring flexible storage options.

The increasing demand for self-storage space is coupled with an increasing investor interest in the sector, with rent collection levels making it increasingly attractive in comparison to other asset classes. This is cementing its position from an alternative asset class in Europe to an established one.

Tom Caines, Director - Alternative Capital Markets, EMEA, JLL said: “We have seen consistent growth in the sector over consecutive years, which continues to be underpinned by supply-demand imbalances. Opportunities to unlock platforms such as U Store It are rare, with the portfolio offering brand dominance in an incredibly under supplied market. The platform has a high percentage of new build assets, which are highly visible and these stores are a great example of the fourth generation facilities, which have been a key driver in the institutionalisation of the self storage market.

“It’s been fantastic to work with the Heitman team again, using our specialist knowledge to advise on expanding its portfolio into Ireland – building on exposure in the UK and Germany – and unlocking this opportunity. I’m excited to see the partnership scale the portfolio over the coming years.”