Responding to Blackstone Europe’s announcement that at least one of the investment funds it advises is considering an offer for the firm, which is valued at around £2.2bn, Quilter Cheviot head of property research Oli Creasey pointed out how unusual it is for such an investor to eye a non-traditional property business.

The “highly operational” model, he said, was a departure from the standard commercial leases typically favoured by private bidders. The appeal of UK REITs generally, many of which are trading well below the value of their assets, is well documented. But will Blackstone’s potential bid for Big Yellow mean other self-storage businesses become takeover targets?

Will Blackstone’s potential bid for Big Yellow mean other self-storage businesses become takeover targets?

While Big Yellow’s share price leapt over 15% in the wake of Blackstone’s announcement, settling at £11.20 as Property Week went to press, Savills research published last month doesn’t show spectacular share price performance in the sector over time.

Using a benchmark of 30 June, its report shows that while Big Yellow’s share price has risen 6% to £10.10 over the previous six months, over the year it has dropped 14% and only risen 1% over five years. Big Yellow’s closest UK rival, Safestore, had seen more positive movement, up 9%, in the past six months, reaching £7.10, but was down by 8% over the year and by 2% over five years.

The other major player in the UK market, Shurgard, is owned by US-based Public Storage and New York State Common Retirement Fund. It is listed on the Euronext Brussels exchange and about 80 of its 340 stores are in the UK. Its shares were worth €31.70 each at the end of June, around £27 back then, and went up 7% over the prior six months and up 4% over both the previous year and five years.

A quick look at the financial reports for these businesses suggests the share prices are not reflective of these companies’ performance and growth. Additionally, a skim through the Self Storage Association UK’s 18th Annual Industry Report 2025 paints a picture of a solid sector with good prospects. Occupancy may have slipped down 1% on 2024 to 75%, but revenue has grown 6%.

Expectations of short-term growth of new stores has slowed, partly thanks to issues around planning and construction costs, but smaller-sized new homes with less storage space, new self-storage formats such as micro urban sites and increasing use of technology cutting operational costs make for a promising future.

A raft of potential buyers were circling Access Self Storage earlier this year and while this didn’t come to fruition, investor interest in the sector was further evidenced by US-based Harrison Street’s entry into the market in a UK joint venture with property and asset management group Pacific Investment.

In short, if Blackstone doesn’t swoop for Big Yellow, don’t be surprised if someone else does. Or if other self-storage firms get swallowed up, too.