KUALA LUMPUR ¨C Investors in premium London real estate can rest easy knowing that their tenants are among the world¡¯s wealthiest and stable renters. That¡¯s the approach that the UK Real Estate Fund operated by Schroders Plc, the venerable U.K. asset manager, has long taken. Listed among the tenants of its $3 billion worth of properties are the British government, Tata Steel and Lloyd¡¯s Bank.
But in the era of Brexit nothing is certain, especially traditional London real estate. So earlier this month the Schroders fund purchased five London-area self-storage facilities for $55 million, making it one of the first institutional investors in this decidedly low-prestige sector.
What the purchase lacks in cachet, it makes up in demographic logic. Downsizing retirees and the growing ranks of home renters in London are creating a chronic need for somewhere to put all their stuff. And that¡¯s creating what Schroders and other real-estate investors see as a Brexit-proof and recession-proof opportunity.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.