Storage operator Extra Space acquired by CapitaLand and APG Investments Asia JV
JLL encouraged and helped the latest owners to take care of the sale process of ESA. “In the present atmosphere, self-storage [properties supply] attractive furthermore steady profits compared to standard real estate assets. It is a property course which is expected to increase in Asia on the back of increased adoption by users with demand for more space in your home, given recent working trends,” states Ting Lim, head of capital markets, Singapore, JLL.
APG Investments Asia, the investment executive for the largest retirement provider in the Netherlands, and also CapitaLand Investment (CLI), a worldwide property financial investment executive, have recently obtained depository platform Extra Space Asia (ESA).
In a 90:10 joint endeavor, APG and CLI have specifically committed a first equity investment of $570 million with an alternative to increase their investment as much as $1.14 billion to fund the purchase of ESA moreover its growth demands.
Both business likewise went into a joint endeavor to increase their new acquisition into an Asia-focused self-storage network. “CLI along with APG are totally devoted to the goal of developing a dominant Asia-focused self-storage system that provides long-term self-sufficient worth to investors,” claims Patricia Goh, managing director, Southeast Asia, CLI.
ESA was founded in 2007 and has indeed become among the Asia-Pacific’s largest self-storage companies, with about 70 owned and operate including rented centers throughout 6 Asian gateway metros. The portfolio makes up more than 1 million square feet of final lettable location, with a tenancy of over 90% and more than 70% of its final real estate earnings being created in Singapore.
Goh incorporates that the foothold gained with obtaining ESA allows the associates to consider scaling the system through potential mergings and acquisitions, as well as the conversion of existing properties into self-storage establishments.