USS 2
USS2 was a private, wholesale Australian investment trust established by USSFM in 2015 as part of a strategy to gain exposure to the growing UK self storage industry through a portfolio of established self storage facilities.
FUND OVERVIEW
In a joint venture with Big Yellow Group (BYG), USS2 was established to acquire a portfolio of 4 self storage centres located in the north-west of England, then operating under the BIG brand.
BYG managed the centres which traded under the Armadillo brand (the Armadillo 2 Portfolio). USS2 had an 80% investment in the Armadillo 2 Portfolio, with 20% ownership by BYG.
Following the acquisition of a further 2 established self storage centers in March 2018, the Armadillo 2 Portfolio consisted of 6 regional centres. The portfolio had a combined installed self storage capacity of 377,000 sq. ft.
PROJECT VALUE
The Armadillo 2 Portfolio was sold to BYG in July 2021 for £52m.
Market Opportunity
- Exposure to the growing UK self storage industry through a portfolio of established self storage facilities.
- Opportunity to co-invest with BYG, a leader in the UK self storage sector.
- Portfolio Optimisation – increase enquiries, rental rates, occupancy and capacity.
- Pursue acquisitions of established self storage centres.
Strategy
The strategy was similar to USS1, acquire an established portfolio and pursue organic growth opportunities within the portfolio, whilst simultaneously looking for acquisitions of established self storage centres.
Portfolio
Outcomes
- Equity IRR of 20%
- Invested equity multiple of 2.5x
