SpaceGenie breaks ground on first self-storage facility in Hassloch, Germany

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SpaceGenie, the drive-up self-storage company, has broken ground on a 40-unit self-storage facility in Hassloch, a municipality in the Bad Dürkheim district of Rhineland-Palatinate, Germany, as the company works to scale operations across the country and cater to growing demand for self-storage from businesses and private individuals.

SpaceGenie is a German drive-up self-storage developer and operator. Launched in 2022 by independent alternative asset manager, Intriva Capital, the company aims to build and operate approximately 50 sites by 2027 as part of a ‘drive-up’ self-storage platform located across Western Germany.

Acquired in June 2022, the 1,700 square-meter site in Hassloch received planning permission in May this year and upon completion will offer storage space for businesses or private consumers looking for space. Construction is expected to be completed in Q1 2024.

SpaceGenie has secured local financing to part-fund the development, with the vast majority of units already reserved by prospective customers. The Hassloch site is expected to achieve a Platinum ESG rating (the highest possible) from the German Sustainable Building Council (DGNB), meaning it will be sustainable from construction to dismantling at the end-of-life stage. 

The 2023 UK Self Storage Industry Annual Report shows that rental returns are up, and occupancy levels have remained consistently high, despite a tough economic backdrop. This demonstrates the resilience of the asset class, even in a relatively mature market with high levels of supply.

The German market, by contrast, significantly lags the UK. According to the German Self-Storage Association, there were only 320 self-storage facilities in the country compared with 2,060 in the UK in 2022. Given the economic, demographic and population density similarities between the UK and Germany, there is clear growth potential for this burgeoning asset class.

Juergen Hobrecker, Head of Business Development at SpaceGenie, said: “Today marks an important milestone for SpaceGenie as we start building our first self-storage site in Hassloch. With the vast majority of Hassloch’s units reserved, a strong pipeline of SpaceGenie projects and a robust financing solution in place, SpaceGenie is well placed to deliver first-class, sustainably-built self-storage capacity to serve the needs of businesses and local communities across the country.

“The continued growth of e-commerce and flexible working have meant that self-storage is becoming a routine part of urban life for hundreds of thousands of people resulting in an ever-growing demand for storage. As an established player, we are delighted to be part of the solution to help satisfy the requirement for quality self-storage in Germany.”

Joe Hare, Director of Asset Management at Intriva, said: "The German self-storage sector is emerging and fragmented, especially when compared to the UK and the US, presenting a perfect opportunity for SpaceGenie given the increasing demand for the product. This is the first step of SpaceGenie’s strategy to grow its presence in Germany by acquiring and developing more sites, and we look forward to working together with the SpaceGenie platform to execute the business plan. 

“As we scale, we are confident that our premium product will be well received in light of the demand and supply dynamics, and that the Hassloch site will generate strong risk adjusted returns.”

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