Singapore’s GIC has entered the Australian self-storage market via a A$270m (€166m) joint venture with ASX-listed National Storage REIT (NSR).
GIC will be the majority partner holding 75% equity interest in the National Storage Ventures Fund (Ventures JV) with NSR holding the remaining 25% stake.
Ventures JV will develop and operate self-storage centres across Australia and aims to deploy around A$270m over the initial 12 to 18 months period.
It will acquire and develop an initial portfolio of 10 foundation assets sourced from NSR’s existing development portfolio. The sale of this portfolio is expected to deliver proceeds of A$120m to NSR which will be used to repay debt.
National Storage is the largest self-storage provider in Australia and New Zealand with more than 250 locations catering to some 90,000 residential and commercial customers.
Managing director Andrew Catsoulis said: “Partnering with a respected investment partner such as GIC in the new National Storage Ventures Fund represents a significant opportunity for National Storage to accelerate and diversify its development pipeline and increase operational scale, while maintaining a conservative level of gearing.
“The Ventures JV will assist NSR to maintain a stable earnings trajectory as it accelerates the development pipeline, and the new assets are being stabilised.“
NSR said the Ventures JV was intended to have an initial term of not less than five years, with the option to extend by mutual agreement.
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