PGIM RE and Pithos Capital JV to invest in French self-storage

PGIM Real Estate, the third-largest real estate firm in the world, and Pithos Capital, a Swiss-based real estate investment and management company, have launched a joint venture in France to acquire and reposition self-storage assets.

Nabil Mabed, Head of France, Spain and Portugal & Senior portfolio manager European value-add strategy, PGIM Real Estate

The joint venture, which will operate under the leading Swiss-based self-storage brand, Zebrabox, aims to build a portfolio of self-storage assets across France. It will develop buildings from the buyout and the repositioning of existing assets and do conversions of obsolete light industrial and retail assets as well as greenfield developments.

“European self-storage has strong fundamentals with significant market growth potential, making a traditionally granular sector an attractive opportunity for institutional investors,” said Nabil Mabed, head of France, Spain and Portugal, senior portfolio manager European value-add strategy, PGIM RE. “We are convinced that France represents a great opportunity to create significant value in this sector and aggregate a compelling sizeable portfolio attractive for core real estate investors looking to diversify away from office and retail or specialised players looking for scale.”

The joint venture has already secured six assets and has a strong pipeline of identified acquisitions. The French self-storage market is growing and supply-constrained, and presents a compelling opportunity to capture market momentum. As a leading self-storage investor and operator, Pithos Capital brings over 20 years of experience in the sector and expertise across private equity and real estate.

“Self-storage has historically outperformed other real estate asset classes even in the toughest of times, and the French market is very under-supplied versus comparable markets like the UK, presenting a compelling investment opportunity,” said Alexandre Hamaide, managing director & co-founder, Pithos Capital. “Our investment proposition for Zebrabox is to build an institutional-grade French self-storage portfolio through a programmatic aggregation of assets in targeted geographical locations.”

Pithos Capital has a particular focus on self-storage, through both direct holdings and joint ventures, and it currently manages 61 self-storage assets (140,000 sq m) with operations in Switzerland, United Kingdom, Spain, and France with a gross asset value of CHF 350 million.

PGIM Real Estate made the investment on behalf of its European value-add strategy. In 2024, PGIM Real Estate’s European value-add strategy has secured over €600 million of acquisitions, primarily across logistics and living in Europe’s major cities, as well as healthcare in the UK and hospitality in Southern Europe.

Author: