In December 2023, Ardian's Real Estate team acquired the French self-storage platform Costockage as part of its broader strategy to diversify its Real Estate portfolio. Founded in 2012, Costockage is the leading self-storage marketplace in France and operates multiple self-storage centers under its Kostok brand. Ardian’s investment aims to support the company’s expansion and operational development to meet the growing demand for storage space in France.
A vision for expansion and diversification
Self-storage is an emerging asset class in France, still significantly underdeveloped compared to markets like the UK and the USA. With significantly fewer centers than both the UK and the USA, the French market offers considerable growth potential. Rather than competing for a slice of the current market, Ardian’s strategy is to grow the pie—establishing new market share in a sector that is accelerating.
As part of our real estate asset class diversification strategy, we are excited to now include self-storage in our portfolio. We believe it’s the perfect time to enter this sector, as it remains in its early stages in France, compared to more mature markets like the USA and the UK. The sector’s low-emissions profile also played a crucial role in our decision-making process.
A strategy focused on market potential
Ardian’s investment in Costockage is centered around the significant growth potential in the French self-storage market. With increasing space constraints faced by individuals and businesses, demand for storage solutions is expected to continue rising, especially in urban areas like Paris, where apartments are shrinking in size. With fewer people leaving their rentals, the need for additional storage solutions is only increasing, as individuals seek to maximize comfort and flexibility within their existing homes. Costockage offers a unique opportunity to address this demand, providing innovative storage solutions with minimal operational overheads, supported by digital and AI technologies that remain out of reach for most traditional operators. This innovative approach not only drives centers’ efficiency but also enables Costockage to expand its market coverage across France by optimizing its market research and real estate development analysis.
As France’s leading marketplace and growing operator, Costockage offers an innovative solution to the rising demand for space, powered by its digital expertise. We are confident that this investment represents the ideal opportunity to enter this asset class and generate attractive, risk-adjusted returns for our clients.
Key elements of the investment strategy:
- Expansion of self-storage facilities: Ardian plans to support Costockage’s expansion by opening additional centers in France over the next years. The company aims to become one of the market leaders in this emerging sector.
- Repurposing obsolete real estate: Ardian and Costockage aim to acquire underperforming buildings, and to convert them into sustainable self-storage centers, in low-supply areas.
- Sustainability focus: Self-storage centers have a low environmental impact, as they require minimal electricity and no heating or cooling. Ardian’s strategy to further install photovoltaic panels will enable centers to operate at an energy-neutral or even energy-positive level, aligning with Ardian's broader sustainability objectives.
Driving growth in an emerging market
The French self-storage market is positioned for substantial growth, with projections indicating the number of centers to double in the next years. This growth presents an exciting opportunity for Costockage to become a leading operator in the country with Ardian’s strategic guidance.
Furthermore, the self-storage sector is underpinned by solid fundamentals. The market benefits from high occupancy rates, with centers in France and in the UK operating at more than 80% occupancy, which demonstrates the success of this asset class. This occupancy rate level is expected to remain strong, further reinforcing the attractiveness of self-storage as an investment. The average monthly rent for a self-storage unit in France is between €15 and €40 per sqm, and EBITDA margins are strong.
Ardian also plans to strengthen its position within the sector by acquiring additional self-storage operators, such as Atout-Box, which was acquired in November 2024. This leading operator, initially based in the South of France, offers a more personal and premium customer experience enabling Ardian’s self-storage platform to address a broader range of clients. Ardian’s Real Estate expertise and focus on operational excellence are expected to support Atout-Box’s expansion across France and reinforce its position as a key player in the rapidly growing French self-storage market.
Harnessing AI for operational excellence
Ardian plans to leverage Costockage’s digital capabilities and AI-driven platform to further optimize operations, increase profitability and enhance customer experience.
Additionally, the commitment to sustainability through energy-efficient operations and the integration of digital technologies will help ensure that Costockage continues to grow in an increasingly competitive yet environmentally conscious market.
We are thrilled to have Ardian as a partner to help us further develop Costockage. With their support, we are excited to continue delivering a top-tier storage experience to both individuals and businesses. We have pioneered the transformation of unused spaces into self-storage and look forward to leveraging Ardian’s real estate and development expertise. The self-storage market is growing rapidly, and we believe the best days are ahead of us.
