Temasek’s CapitaLand agrees £1bn deal for Access Self Storage in UK expansion

A Singaporean wealth fund is poised to deepen its exposure to UK real estate with a deal to acquire Access Self Storage for more than £1 billion, underscoring continued international demand for British property despite a faltering macroeconomic backdrop.

The deal is being led by CapitaLand, part of the Temasek portfolio, and represents the latest major move in the UK self-storage sector. Although the final documents are yet to be signed, the agreed price is understood to be just over £1 billion.

The deal, if completed, would bring a significant windfall for the Lalji family, which owns Access Self Storage through its investment vehicle Precise Advisory. The business has been in existence for over a year, with JP Morgan advisers overseeing the sale process.

Established over 20 years ago, Access Self Storage operates 57 sites across the UK, with a strong focus within the M25. Although its most recent annual turnover reached £27.9 million, down slightly year-on-year, the company’s appeal lies mainly in its properties.

Industry insiders note that Access holds free domain on most of its sites, significantly enhancing its underlying asset value and making it attractive to long-term investors looking for stable, income-generating real estate.

That asset-backed model helps explain premium valuations, which some analysts previously questioned when measured against income alone.

Despite the agreement in principle, the banks involved in the program are said to be cautious, given the current state of the country and economy. Rising borrowing costs, fueled by instability related to the Middle East conflict, could threaten the deal’s conclusion.

CapitaLand declined to comment on the transaction, citing a policy of not responding to market speculation.

The proposed acquisition reflects a broader trend of overseas investors targeting the UK self-storage market, which remains underdeveloped compared to mature markets such as the United States and Australia.

According to industry data, the UK currently provides just 0.89 square feet of storage space per capita, compared to more than 7 square feet in the US, a gap that investors believe offers significant potential for long-term growth.

Recent work in the field reinforces that view. In 2024, Surgard acquired Lok’nStore in a deal worth £380 million, while Blackstone made a £2 billion-plus bid for Big Yellow before talks collapsed late last year.

For Temasek, this move is in line with the strategy of investing in high-yielding, income-generating assets in stable markets. The UK property sector, despite recent headwinds, continues to attract private equity thanks to transparency, liquidity and long-term demand fundamentals.

The acquisition will further strengthen CapitaLand’s global portfolio, adding a foothold in a local but growing segment of the real estate market.

If completed, this deal will demonstrate the renewed confidence of UK commercial property to international investors, even if domestic conditions remain challenging, and also highlight the growing strategic importance of other asset classes such as self-storage in global investment portfolios.