This article is from the Australian Property Journal archive
ABACUS Property Group has added to its Perth self-storage portfolio with the acquisition of a modern facility in the southern suburbs, as the sector proves its resilience throughout the pandemic.
Cockburn Central Self Storage has about 500 units spanning an enclosed storage area of around 5,000 sqm. The facility sits on an extensive 1.679 hectare site with a hardstand area of around one hectare being utilised for vehicle, boat and caravan storage.
The facility sold for $8.6 million by a Western Australian private owner operator through JLL’s Sean Flynn and Nigel Freshwater, who received over 90 enquires and multiple bids.
ASX-listed Abacus has stamped itself on the Perth market over the past 18 months with the acquisition of nine self-storage facilities, responding to strong demand and growth potential in selected areas.
The sector has remained resilient through the challenging economic conditions due to the COVID-19 pandemic. JLL Research data shows WA occupancy rates at 77.5% in August, up from 74.6% in June, and 75.4% 12 months earlier.
Rents have also remained stable over the past year.
Abacus recorded steady RevPAM over FY20 across its self-storage portfolio, which recorded a valuation gain of 2.8%, while in comparison its office portfolio recorded a loss of 4.1%.
JLL’s strategic research manager, Ronak Bhimjiani said demand for self-storage is typically linked to population growth.
“The current economic disruption caused by COVID-19 will undoubtedly lead to lower population growth in the short-term. However, demand for self-storage is currently being supported by households working from home, therefore needing more space and increased demand from businesses that have shifted their operations online.”
Freshwater said Cockburn Central is a very strategic land holding with flexible underlying zoning that in the long term would support a mix of retail, commercial and medium to high density residential development.
“We also anticipate that population growth will return once the global pandemic subsides and borders re-open, which should further boost demand for self-storage facilities going forward.”
