Cain International has agreed a £11m construction loan with Compound Real Estate to fund the development of a 65,000 sq ft self-storage facility in Milton Keynes.
Backed by a private family office, Compound is a UK-based specialist self-storage developer with a development pipeline of 500,000 sq ft across London and the South East.
This new asset will offer 868 storage units ranging from 10 sq ft to 1,000 sq ft. Compound is targeting BREEAM Excellent and net zero carbon status for the development.
The financing represents Cain’s initial transaction in the self-storage sector.
James MacAlpine, associate, real estate credit at Cain, said: “We are excited to support Compound on our first deal in the self-storage sector. As the UK market experiences strong growth in this area, this new partnership is a natural fit for our commitment to supporting high quality sponsors in sectors with strong market fundamentals.”
Jacob Sandelson, founding partner at Compound, added: “Cain’s support is essential as we scale our operations and expand into further key markets, driving toward our goal of building one of the largest privately held self-storage portfolios in the UK. This development also reflects our core priorities – exceptional design, customer centricity, strong ESG standards, and operational excellence.”
Brotherton, Archor and Freeths advised Compound and Blake Morgan, CBRE and Colliers advised Cain.
