Shurgard Bolt-on acquisition in Sweden for 20.9m

Shurgard acquired two Sesam Self Storage facilities in Lund and Helsingborg, Sweden, from Granitor. The deal closed on 2/12/25, adding 11,200 sqm of space across 1,800 units. The occupancy currently stands at approx. 20%. Both freehold properties will be remotely managed from existing Shurgard sites as part of its cluster strategy. This was illustrated in our recent property tour and reduces the headcount per store. It also brings more FTE together in 1 location which increases the job satisfaction. The investment totals €20.9m, with an expected yield of approx. 10% at maturity. Given the low occupancy, we believe that the properties are relatively new. Shurgard typically reaches its maximum yield-on-cost after 5-7 years, depending on how fast they can ramp up occupancy and rent/sqm. We expected more bolt-on acquisitions from Shurgard and ignore the market noise on UK private equity competition.