Forum Make Space Storage Fund (MSSF) and FMS Capital Trust have each bought 50 per cent stakes in four self-storage facilities in Hamilton, Ontario. The properties are located in Ancaster, Dundas, Upper James, and Waterdown. Together, they cover about 184,000 square feet and hold roughly 1,200 storage units. The deal follows a previous acquisition in June of five properties in Grimsby, Niagara Falls, Keswick, and Port Perry. That portfolio contained about 1,500 units and 200,000 square feet of net rentable area.
Clustering Strategy
The seller also developed the Hamilton facilities. Forum Asset Management managing partner Aly Damji told RENX the owner took a portion of the sales proceeds in MSSF units. This latest deal expands the fund’s holdings in the region. The properties will be managed by the Forum Make Space operating platform, which runs a network of self-storage facilities across Canada. The platform has more than $500 million in assets under management and comprises 67 facilities spanning 2.7 million square feet.
“We had assets in some of these areas, or in close proximity to them, so we knew the operating synergies that could be derived through acquiring these and putting them through our clustering strategy,” said Damji.
Canada’s self-storage market is still developing compared to the United States. About 80 per cent of Canada’s approximately 4,000 self-storage facilities are independently owned. Canada has roughly two-and-a-half square feet of storage per capita, while the U.S. has eight-plus square feet per capita. This gap creates room for companies to acquire smaller operators and expand their reach. The industry is ripe for consolidation.
Focused on Single-Story Facilities
Forum Make Space and FMS Capital Trust focus on single-story, drive-up facilities. These sites often include some indoor climate-controlled space. The funds prefer locations with larger land availability. This allows them to increase revenue through portable storage in the short to medium term. As demand grows, they can add more long-term storage facilities.
Aly Damji noted that competitors often target multi-storey, urban, climate-controlled facilities. His team prefers sites where they can add value through operations. “Alternative real estate sectors require hands-on management to drive alpha. So, we really like to lean into acquisitions where we know there’s operational upside that can be gained by tucking them into our existing operations,” he said.
The Forum Make Space and Make Space Inc. joint venture launched MSSF in January 2024. The enterprise value of Forum Asset Management’s assets exceeds $3.8 billion. The fund is the evergreen self-storage fund for the joint venture. It is an open-ended private real estate investment trust with a portfolio of 37 properties across six provinces. The total rentable square footage is more than 1.4 million.
MSSF is targeting a 12 to 15 per cent annual total net return for investors. Investors can access it through a variety of private wealth platforms. The fund seeks value-added returns and income growth over time. “We’re 100 per cent Canadian and privately owned,” said Damji. “That’s a little different than some of the other competitors here who are either funded by pension plans or are Americans entering Canada.”
Asset Growth and Future Plans
The closed-ended FMS Capital Trust fund has grown to more than $110 million in gross asset value. It is substantially fully allocated a year after its launch in August 2025. FMS Capital Trust has deployed capital exclusively into established income-producing self-storage assets. The focus is on under-served secondary markets. The fund targets a 15 per cent pre-tax gross internal rate of return and a 4.5 per cent annual distribution.
