Heitman LLC, a global real estate investment management firm, has announced the acquisition of a self-storage site located in Galway, Ireland. This strategic move further solidifies Heitman’s U-Store It brand as the leading provider of self-storage facilities across the country. The acquisition is part of Heitman’s broader global core plus strategy, highlighting the firm’s strong confidence in the European self-storage market, particularly in Ireland.
The newly acquired property spans approximately 72,000 square feet, with an additional 36,000 square feet designated for potential future expansion. Positioned within a prominent business park, the site is conveniently located just 10 minutes from Galway’s city centre, making it central to business, manufacturing, and residential communities.
Tony Smedley, Managing Director and Head of European Private Equity at Heitman, stated, “Heitman has been investing in self-storage assets in Europe since 2008 and in North America since 1996. This acquisition aligns with our strategy to enhance Heitman’s presence in Ireland, a market historically marked by limited competition.” He emphasized that the European self-storage sector is poised for accelerated growth, with supply per capita being just 1/20 of that in the United States. Smedley pointed out that the demand drivers for storage needs are largely uncorrelated with GDP, presenting a compelling opportunity for investors.
The acquisition follows Heitman’s purchase of the U-Store It self-storage platform in Ireland in 2022, a move prompted by strong demand and supply fundamentals in the sector. Smedley expressed optimism about the potential for growth in the Irish market, noting that the self-storage industry is still in the early stages of institutionalisation. He highlighted that opportunities for value creation exist at various levels, including physical enhancements, operational improvements, and platform development.
With this acquisition, Heitman aims to address the storage needs of the Galway community while benefiting from greater economies of scale. The firm plans to leverage its operational expertise to optimise the earnings potential of the facility, thereby enhancing service offerings to local residents and businesses.
The move signifies a continued trend of investment in self-storage facilities in Europe, with firms like Heitman recognising the growing demand for such services. The Galway site is expected to cater to a diverse range of customers, including individuals in need of additional storage space as well as businesses seeking secure storage solutions.
As Heitman continues to expand its footprint in the European self-storage market, the company remains committed to delivering high-quality storage solutions and enhancing the customer experience. The Galway acquisition not only strengthens Heitman’s position in Ireland but also underscores the firm’s strategic vision for growth in the self-storage sector across Europe.