Singapore’s sovereign wealth fund is poised to deepen its exposure to UK property with a deal to acquire Access Self Storage for more than £1bn, underlining continued international demand for UK property assets despite a volatile macroeconomic environment.
The transaction will be led by CapitaLand, part of the Temasek portfolio, and represents one of the largest recent moves into the UK self-storage sector. While final documentation has yet to be signed, the agreed price is estimated to be just over £1 billion.
If the deal goes through, it would bring a significant profit 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, and JP Morgan advisors are monitoring the sales process.
Access Self Storage was founded more than 20 years ago and operates 57 sites across the UK, with a strong focus on the M25. Although its most recent annual turnover was £27.9 million, slightly down on the previous year, the company’s appeal lies primarily in its property holdings.
Industry insiders point out that Access owns the property rights to most of its locations, significantly increasing the underlying asset value and making it attractive to long-term investors seeking stable, income-generating properties.
This asset-backed model helps explain the premium valuation that some analysts had previously questioned when measured by revenue alone.
Despite an agreement in principle, the bankers involved in the process are said to be cautious given the current geopolitical and economic environment. Rising borrowing costs, exacerbated by instability related to the Middle East conflict, could continue to jeopardize the completion of the deal.
CapitaLand declined to comment on the transaction, citing its policy of not responding to market speculation.
The proposed acquisition reflects a broader trend of foreign investors targeting the UK self-storage market, which remains relatively underdeveloped compared to more mature markets such as the United States and Australia.
According to industry data, the UK currently offers just 0.89 square feet of self-storage space per person, compared to more than 7 square feet in the US, a gap that investors believe offers significant long-term growth potential.
Recent activity in this sector confirms this view. In 2024, Shurgard acquired Lok’nStore in a deal worth around £380m, while Blackstone was exploring a takeover of Big Yellow worth more than £2bn before talks collapsed late last year.
For Temasek, this move is in line with its strategy to invest in high-quality, income-generating assets in stable markets. The UK property sector continues to attract government capital despite recent headwinds due to its transparency, liquidity and long-term demand fundamentals.
The acquisition would also strengthen CapitaLand’s global portfolio and gain a foothold in a niche but expanding segment of the real estate market.
If completed, the deal would signal renewed confidence from international investors in UK commercial real estate, even as conditions remain challenging at home, and further underline the growing strategic importance of alternative asset classes such as self-storage in global investment portfolios.
