Singapore’s sovereign wealth fund is preparing to expand its holdings in UK real estate through a deal to acquire Access Self Storage for over £1 billion, reflecting sustained international interest in British property despite a volatile economic and geopolitical climate.
The acquisition is being led by CapitaLand, part of the Temasek portfolio, and marks one of the largest recent moves into the UK self-storage sector. While final agreements are yet to be signed, sources familiar with the negotiations say the agreed price is slightly above £1 billion.
The transaction would provide a substantial return to the Lalji family, which owns Access Self Storage through its investment vehicle Precis Advisory. The company has been on the market for more than a year, with JP Morgan advising on the sale.
Founded more than two decades ago, Access Self Storage operates 57 sites across the UK, with a significant concentration inside the M25. Its most recent annual revenue stood at £27.9 million, slightly down from the previous year. Analysts note that the firm’s appeal lies largely in its property holdings, as it owns the freehold for the majority of its sites. This asset-backed model underpins the high valuation and attracts investors seeking stable, income-generating real estate over the long term.
Bankers involved in the transaction are approaching with caution. Rising borrowing costs, combined with instability tied to the Middle East conflict, could still affect the deal’s completion. CapitaLand declined to comment, citing a policy against responding to market speculation.
The proposed acquisition highlights a broader trend of overseas investors targeting the UK self-storage sector, which remains underdeveloped compared with markets such as the United States and Australia. The UK currently provides just 0.89 square feet of self-storage space per person, compared with more than seven square feet in the US, creating potential for long-term growth.
Recent deals underline this interest. In 2024, Shurgard acquired Lok’nStore for around £380 million, while Blackstone explored a takeover of Big Yellow valued at over £2 billion before negotiations fell through.
For Temasek, the move aligns with its strategy of investing in high-quality, income-generating assets in stable markets. Despite headwinds in the UK property sector, the country continues to attract sovereign wealth investment due to its transparency, liquidity, and long-term demand fundamentals.
The acquisition would also bolster CapitaLand’s global portfolio, providing a foothold in a niche but expanding segment of real estate. If completed, the deal would signal renewed confidence from international investors in UK commercial property and underscore the growing importance of alternative asset classes such as self-storage in global investment strategies.