OakNorth Bank lends £37m to Somerset-headquartered independent self-storage provider, UK Storage Company, to support a buyout

  • Founded in 2005 by Keith and Cathy Taylor, UK Storage Company is one of the UK’s largest independent self-storage providers;
  • Following the opening of its first sites in Bridgwater and Taunton, Somerset, the business now operates 28 stores, totalling over 880k sq. ft of storage space across England;
  • The £37m loan from OakNorth complements an investment from Pithos Capital and funds advised by Davidson Kempner Capital Management LP;
  • Demand for self-storage units is increasing with operator revenues rising 6.5% to £990m, as more people unable to upsize are choosing to put their possessions elsewhere[1].

OakNorth Bank, the neobank for entrepreneurs, by entrepreneurs, has provided a £37m loan to UK Storage Company, one of the UK’s largest independent self-storage providers.

Founded in 2005 by Keith and Cathy Taylor, UK Storage Company opened its first site in Bridgwater, Somerset that year, with the site also being used as its headquarters. Its second site soon followed in Taunton, Somerset, and today, the business operates 28 stores across England. Totalling over 880k sq. ft of storage space, all of UK Storage Company’s sites are fully automated, offering customers 24-hour access to their units via a unique access code.

The loan from OakNorth Bank will be used to support a buyout that will allow Keith and Cathy Taylor to exit the business. A consortium led by investment funds advised by Davidson Kempner Capital Management LP (“Davidson Kempner”), and operating partner Pithos Capital (“the Consortium”) has acquired the business. With a pan-European presence and a focus on self-storage, Pithos Capital has over 20 years’ experience in investing and operating in the industry. Davidson Kempner Capital is a global investment management firm with more than 39 years’ experience and a focus on fundamental investing with a multi-strategy approach.

Martin Williams, Director of Debt Finance at OakNorth, added: “The UK’s self-storage market has experienced significant growth over recent times, driven by people who are reconfiguring their homes to accommodate hybrid working or unable to upsize and instead choosing to put their possessions elsewhere. UK Storage Company, which enjoys an excellent reputation for delivering a top-quality service, is in a perfect position to capitalise on this opportunity. We thrive on supporting sector specialists such as Pithos Capital and established investors such as Davidson Kempner in acquiring a fast-growing and previously family-run business like UK Storage Company and helping it to achieve its growth ambitions. We’re excited to be part of the company’s growth story.”

ENDS

Notes to editors

[1] The Guardian – Housing crisis drives £1bn-a-year boom in UK self-storage

About OakNorth Bank plc

Launched in September 2015 and founded by entrepreneurs, OakNorth Bank provides fast, flexible, and accessible debt finance to the UK’s Missing Middle.

Since its launch, the bank has:

  • Lent over £9.5bn, directly helping with the creation of 39,000 new jobs and 28,000 new homes across the UK.
  • Raised deposits from c.175,000 savers.
  • Supported several hundred businesses across the UK with the debt finance to pursue their growth ambitions.

It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Visit www.oaknorth.co.uk for more information.

Media contact

Tom Pavey-Smith, Associate Director, Growth & Communications – [email protected] / [email protected] / 0791 716 5588

 

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