Ducalian Has Launched A New Fund Focused on the UK's Self Storage Sector
Private-equity firm Ducalian has launched a new self-storage venture by acquiring a warehouse in Littlehampton, West Sussex, England for around £1.2 million, along with signing a contract with Engage Management Services to operate the building as a self-storage facility under the ‘Titan’ brand.
The building, purchased from Falcon Property Trust has undergone redevelopment by specialist design-and-build contractor Active Supply & Design who have installed a mezzanine floor, elevator and individually secured units in order to expand the warehouse and provide 30,000 square feet of net rentable self-storage space.
The London firm are now targeting similar opportunities in affluent urban areas throughout the South-East and Midlands, it said. James McCulloch, investment director of Ducalian commented: “The demand for self-storage space, especially in the under-served south coast market, remains considerable and we are anticipating a strong and growing revenue stream from this asset.”
Target returns are forecasted to be in the region of 20% per annum. McCulloch added: “Our investment model allows investors to tailor their exposure not only to specific asset classes, but to specific assets within these classes. This greater degree of flexibility brings considerable advantages for those investors seeking increased control over their risk profile.”
Ducalian are a firm of real estate and finance professionals in Central London working with an investor base of private clients, family offices and Trusts. The private-equity firm specialise in creating value through planning, developing and occupancy growth in the UK real estate, alternative energy and infrastructure sectors. Their small-scale flexibility enables them to transact quickly providing greater returns to a client base looking for an alternative investment.
Legal Adviser on the deal
Partner Peter Belcher commented:
“We were delighted to assist in bringing this Project to fruition. The Project had a number of challenges which were overcome and set a blue print in respect of the matrix of documents, terms of engagement and property documentation required for future investment opportunities. Ducalian will be active in the self-storage market and are likely to be a dynamic operator in this sector.”