The first investment to be acquired is in Newcastle-under-Lyme, Staffordshire, which has been trading for three years and generates the target yield of 6 per cent. The facility operator Bigfoot has a target area for acquisitions comprising Manchester, Birmingham and Leicester.
The fund intends to acquire facilities that are trading and it will look to take advantage of opportunities from overleveraged operators and banks looking to restructure in the current market conditions.
The minimum fundraising to complete the first acquisition is £1m, with the maximum set to £10m. Investors can buy in tranches of £10,000. Stellar believes there is significant growth potential in the self-storage market in the UK, making comparisons to the more developed markets in the US and Australia.