Self-storage group targets €2bn platform after locking up major financing deal

As reported in React News by Chris Borland on 22 Apr 2024 09:17 BST

Private equity-backed firm also hires new chief financial officer

• What Metric Capital Partners building €2bn pan-European self-storage business called Rafter Group
• Why Private equity firm has refinanced part of its portfolio with £200m facility from Nuveen
• What next Simon Loveridge takes the reins as CFO as firm seeks further acquisitions in target markets across Europe

Private equity firm Metric Capital Partners’ plan to build a €2bn pan-European
self-storage platform has been boosted by a landmark financing deal and a
marquee leadership hire, React News can reveal.

Simon Loveridge has been appointed as chief financial officer of Rafter Group,
Metric Capital’s technology-first self-storage business which it has been
investing in for over eight years. Concurrently, a £200m refinancing with
Nuveen has been secured for the UK and German assets in the Rafter
portfolio.

Rafter is the topco for the self-storage businesses Metric has been building
across six countries in Europe: UK, Spain, France, Germany, Poland and the
Czech Republic. With more than 60 stores secured in those markets, Rafter is
progressing towards a platform with an end value approaching €2bn.

The brands in the Rafter suite include the UK Attic business, the Storemore
brand in Germany as well as Spain, Less Mess Storage in Central Eastern
Europe and Lockall in France. Rafter’s vision is to be the largest independent
provider – through an opco/propco structure – of premium self-storage in
Europe by using market-leading sustainability standards.

Loveridge and Rafter team-building

Loveridge, who has a background in operational real estate and has raised over
$3bn of debt as well as equity, joins Rafter from Goldman Sachs-backed senior
housing platform Riverstone, where he was the CFO. Prior to this, he held
senior roles at Global Student Accommodation Group (GSA) and Unite
Students.
With a focus on data and technology, Metric Capital has hired a finance team,
analysis manager and a chief technology officer to support Loveridge.
Loveridge said: “I’m delighted to be joining Rafter at this exciting part in its
journey. The sector has been one of the best performing in real estate over the
past 10 years and has huge potential to expend given the chronic under supply
in Europe relative to more mature markets. I am looking forward to continue to
grow our significant and high quality portfolio across Europe.”

£200m debt deal with Nuveen

Rafter has secured a £200m loan from Nuveen for its UK and German
platforms. The facility refinances debt held against the existing assets in the two
countries, while providing capacity to build out the portfolio of over 20 stores
across both markets with that pipeline already progressed.
Alastair Balfour, partner at Metric Capital Partners, said: “We are pleased to
announce this continued partnership with Nuveen across our platform in the UK
and Germany. This is a material extension to the existing facility in the UK
showing the continued support by our funding partners on our market-leading
platform across Europe.”

” We see strong fundamentals for growth in the self-storage sector
in Europe and Rafter as an excellent operator”
CHRISTIAN JANSSEN, NUVEEN

Christian Janssen, head of real estate debt for Europe at Nuveen Real Estate,
added: “We are delighted to extend our partnership with Rafter beyond the UK
Attic business and into the German market with their Storemore brand. We see
strong fundamentals for growth in the self-storage sector in Europe and Rafter
as an excellent operator. We are pleased to be able to support the team in their
growth ambitions and are particularly proud of providing a bespoke and creative
acquisition-development-hold financing solution which is both multi-jurisdictional
and dual-currency.”
The loan is thought to be one of the largest advanced in Europe’s self-storage
sector, although Nuveen has a significant grasp of the space, having set out its
plan for European self-storage portfolio over the next five years in 2022.

A subsidiary of Teachers Insurance and Annuity Association (TIAA), advised by
Nuveen, finalised a take-private agreement of Norway’s Self Storage Group in
November, valuing the company at €330m.
The race to aggregate in European self-storage is picking up pace. The owners
of Storage24 are considering the future of the giant self-storage platform, with
plans being considered to bring new capital into the business.
The privately owned company, which is the second-largest self-storage
business in Europe after Shurgard, is in the early stages of considering a
recapitalisation or sale. It has appointed investment bank Houlihan Lokey to
advise, which is working alongside Savills.
Last week, Brussels-listed Shurgard Self Storage agreed a cash offer to buy
Lokn’Store, the UK self storage group, for £378m.
JLL advised Metric Capital Partners on the financing deal with Nuveen.