The Latvian investment company Merito Partners (Merito) has established a specialized real estate fund ‘Merito Self Storage Fund’ (Fund) with total target size EUR 30 million. The company also aims to secure around EUR 50 million in bank co-financing. The Fund will develop the largest pan-Baltic network of self storage facilities in the Baltic States over the next five years.
Merito Partners has successfully secured almost EUR 5 million in capital from over 10 Latvian investors and actively continues to fundraise. Over the next few months, the fund’s total value will reach at least EUR 10 million. Merito plans to acquire its first property and convert it into a self storage facility in the upcoming weeks. Currently, the fund is negotiating acquisitions of more than five separate properties throughout the Baltics. Merito has partnered with the leading real estate market companies and is evaluating numerous potential properties. The network of self storage facilities will be developed in key cities, including Riga, Vilnius, Kaunas, and Tallinn, with the potential for expansion into other major Baltic cities.
According to Mārtiņš Baumanis, Partner at Merito Partners, “The self storage sector in Europe has experienced rapid expansion in recent years. Currently, there are nearly 6,000 specialised storage facilities. In Latvia, Lithuania and Estonia, the available specialized storage space is approximately 4 square meters per 1,000 inhabitants. This is far behind European and Scandinavian countries, where this metric is more than ten times higher and the occupancy of facilities remain consistently high. In light of the market situation, we see a significant upside potential for business development and return on investment in the Baltics.”
For the implementation of this project “Merito Self Storage Fund” has established SIA Safe Storage Group, which will focus on purchasing and converting existing, underutilized buildings into specialized storage facilities. The company was founded together with an experienced industry professional Augusts Iesalnieks, who is co-founder and Chairman of the Board of the Safe Storage Group.
“In recent years, there has been a rapid increase in demand for storage facilities among individuals and entrepreneurs. Customers have various reasons for choosing self storage facilities, ranging from the need for secure spaces to safeguard company archives and store inventory, to long-term storage solutions for personal belongings. Some clients require temporary storage while moving or renovating a residence, or for storing seasonal inventory items. Small and medium-sized enterprises, particularly e-commerce companies, actively utilize storage facilities for cost optimization. This is a sustainable business model that provides an opportunity to repurpose underutilized urban properties into functional spaces that fulfil resident’s needs,” explains Augusts Iesalnieks, co-founder and Chairman of the Board at Safe Storage Group. The safe storage business model is environmentally friendly, benefits both private individuals and investors, and provides customers with safe, affordable, and flexible storage options.
The average size of each self storage unit will range from 4 to 6 square meters. The network will consist of at least 10,000 units. All renovated self storage buildings will use energy-efficient construction solutions. The facilities will offer customers modern technology options, including a mobile app that provides instant access to the premises with one touch, as well as remote online transactions and automatic payment for services. Customers will have 24/7 access to their storage facilities.