Private equity firm Blackstone is weighing up a potential takeover of UK self-storage giant Big Yellow Group. In a statement on 13 October in response to recent press speculation, Blackstone Europe confirmed that one or more of the investment funds advised by Blackstone is considering an offer.
“Blackstone Funds’ evaluation of Big Yellow is at a preliminary stage and Blackstone is considering, amongst other factors, the macro-economic environment including the potential impact of the upcoming UK Budget as it relates to the self-storage sector,” according to the stock exchange statement.
Under UK takeover rules, Blackstone has until 10 November make a firm offer.
Mark White, Partner in our Real Estate team, comments on the potential implications of a deal in both Private Equity News and Property Week. He argues:
The deal would represent a vote of confidence not just in the self-storage sector, but also in the broader living sector which underpins much of its revenue. The UK self-storage market continues to show strong fundamentals which, in a more challenging investment market for more ‘traditional’ asset classes, make it attractive.
"This deal would continue the expansion of private capital into the living and related sectors, particularly US private capital, a sure sign that investors see potential waiting to be unlocked. With the Government’s budget just weeks away, and a spotlight likely to be shone on residential property taxes if Labour make some of the changes that have been trailed, we may see that unlocking happen sooner rather than later.
Read Mark's comments in Property Week here and Private Equity News here (subscription required).
