PGIM Real Estate provides £48M loan to space station

The new financing will support the further expansion of Space Station’s portfolio, one of the largest independent self-storage companies in the UK market. The funds are expected to be used both to refinance existing obligations and to finance new investments and development projects.

The self-storage sector continues to attract strong interest from institutional investors and financing providers, as it is characterised by stable cash flows, high occupancy rates, and growing demand from both individuals and businesses. The expansion of e-commerce, changing housing needs, and increased demand for flexible storage solutions are strengthening the sector’s long-term outlook.

For PGIM Real Estate, the transaction forms part of its strategy to expand its activity in private real estate debt, where it continues to seek financing opportunities in high-quality assets with strong operating fundamentals and resilient business models.

The agreement comes at a time when the UK real estate market is showing signs of stabilisation following pressure from higher interest rates in recent years, with investors increasingly shifting towards specialist property sectors that offer attractive yields and long-term growth potential.