Newcore Capital Management has moved into the self-storage sector through a partnership with Engage Management Services.
The alternative real estate investment manager鈥檚 Newcore Strategic Situations IV value-add fund is committing an initial 拢10m (鈧�11.7m) to build a portfolio of freehold self-storage assets in the UK.
Using debt and recycling cash, Newcore said it expects to invest 拢25m in the sector over the next 18 months, which would equate to around five assets.
Newcore will target assets in the south-east of England, as well as other regional locations, such as Bristol and Bath.
The manager said it will either acquire existing buildings or sites on which to develop new-build facilities.
The 拢100m Newcore Strategic Situations IV fund will own the assets and self-storage operator Engage will be the operator and development manager.
Hugo Llewelyn, managing director of Newcore, said: 鈥淲e believe this is an opportune time to invest in the self-storage sector for our five-year investment horizon.
鈥淭he UK is still undersupplied in self-storage in the major urban conurbations and there is little new supply coming onto the market.鈥�
The sector has also proved resilient through the downturn, Llewelyn said.
鈥淪elf-storage is a challenging market to enter, as you need a strong operating platform, so we are delighted to have partnered with Engage, which has a very impressive track record of performance.鈥�
