Abacus Property Group expects to spin off its self-storage assets and to float a trust with a portfolio valued at more than A$3bn (€1.8bn) on the Australian Securities Exchange.

IPE Real Assets understands that Abacus is planning to raise A$300-A$350m for the Abacus Storage King (ASK) trust which will own 131 self-storage facilities across Australia and New Zealand.

Abacus intended to hold 19.9% of ASK securities, while South African billionaire Nathan Kirsh would take up a stake of just over 40%, leaving the free float at more than 40%.

Abacus Group’s managing director, Steven Sewell, said the company had undertaken independent valuations of its assets ahead of the demerger and listing of the self-storage trust.

“Pleasingly, we have seen positive momentum continue in our A$2.6bn self-storage portfolio, most notably in the valuer’s assumption of rents, which have risen 3.2% so far this calendar year.”

Sewell said the self-storage portfolio had delivered a year-on-year double-digit annualised rental increase, demonstrating portfolio resilience sourced from its diverse customer base.

“The increase in valuations of the self-storage portfolio is estimated to result in gross assets of the ASK totalling in excess of A$3bn as of April 30, 2023,” he said.

Abacus is due to lodge documentation in July for an expected listing in August and will seek unitholder approval for its demerger proposal at an extraordinary general meeting.

The group will continue to own the company’s A$2.4bn portfolio of commercial buildings.

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