Hines Makes European Self-Storage Investment Debut with UK Portfolio Acquisition
Hines, a global real estate developer and fund manager, has made its first foray into European self-storage investment with the acquisition of a three-asset portfolio in the UK. The portfolio, located in the southeast of England, includes 1,449 self-storage and office units across three trading assets in Ashford, Chatham, and Ebbsfleet.
The acquisition, made on behalf of Hines’ latest European value-add real estate fund, marks a significant milestone for the company. The financial details of the transaction were not disclosed, but Hines has enlisted UK self-storage operator Storage King for portfolio management and branding.
The move by Hines European Real Estate Partners III (HEREP III) is expected to open up opportunities for further acquisitions, developments, and repositioning across Europe. While the initial focus will be on the UK market, Hines plans to expand into other European markets in the future with a goal of building a portfolio over £200m in value.
Greg Cooper, managing director and head of UK industrial and logistics at Hines, highlighted the long-term demographic and consumer trends driving demand in the UK self-storage sector, particularly in the densely populated commuter towns of the South-East of England. With Hines’ extensive experience and Storage King’s expertise, the partnership is poised to create a competitive offering in the market.
Paul White, senior managing director at Hines, emphasized the rising demand and limited supply in the UK self-storage sector, presenting an attractive investment opportunity. He sees the sector as fragmented and ripe for consolidation, positioning Hines to build a high-performing platform in the space.
Overall, Hines’ entry into the European self-storage market signifies a strategic move to capitalize on the growing demand for storage solutions in the region. With the right partnership and investment strategy in place, Hines is well-positioned to make a significant impact in the sector.
