Self-storage is a booming business in Europe, with growth expected to follow the U.S. trend. Market leaders such as Shurgard Self Storage Europe have expanded significantly over the last decade. People are moving more often and accumulating more possessions driving the need for storage units of all types.
Consolidation in the self-storage industry appears to be spreading as several significant mergers and acquisitions (M&A) have occurred recently. Industry watchers are curious to see if the M&A trend in Europe follows the same pattern as indicated by events in Australia, Canada and the United Kingdom.
This article describes the reasons behind this trend, the advantages/disadvantages to self-storage owners and the overall affect on the industry.
Several industry giants have entered in to mergers or acquisitions over the past year. Here’s a sampling:
StorageVault Canada Inc. entered into letters of intent to acquire a self-storage facility in Winnipeg, Canada, for approximately $7.3 million and a portable-storage business in Regina, Saskatchewan, for approximately $1.35 million in May. The company’s goal is to become the exclusive master franchisee for the future development and operation of portable-storage facilities throughout Canada. It intends to grow through the acquisition of additional self-storage facilities and the development of portable-storage services.
Sydney, Australia-based real estate investment trust Valad Property Group sold its 50 percent interest in the $380 million self-storage portfolio it owns in a joint venture with Kennard Self Storage in June. All of Valad’s interest in the portfolio will be sold to the Kennard family over the next 18 months.
United Kingdom-based firm Close Investments Ltd. purchased a new self-storage site in Worcester, England, to be managed by Storage King, which has 45 self-storage sites across England and Wales.