This article is from the Australian Property Journal archive
ABACUS Property Group continues to target the self-storage sector, purchasing a Wollongong facility in an off-market deal, its second acquisition in a fortnight.
Tim Jones and Michael Farina at MMJ Wollongong handled the $10.9 million off-market transaction, which comes hot on the heels of another deal, which saw Abacus buy an industrial property in Wollongong’s northern suburbs for $5.2 million.
The modern facility in the heart of Wollongong’s industrial precinct comprises three lots – 100 Montague St, 104 Montague St and 3 Ralph Black Dr – and includes approximately 461 storage units and a further five separate warehouse units. The facility sits on an extensive 1.029ha site with a 2,500 sqm hardstand area dedicated to vehicle, boat and caravan storage.
Jones said Abacus is stamping itself on the Illawarra market in response to strong demand and growth potential in the sector.
“The robust nature of both this sale and the one we effected to Abacus last year, are good positive indicators for the self-storage sector and the region’s market as a whole.
“Having such a well-respected and proved group actively expanding their operations in and around Wollongong during such an uncertain time, is a real feather in our cap.” Jones said.
This is Abacus’ second self-storage acquisition in a fortnight after purchasing a Cockburn Central facility in Perth for $8.6 million last month.
The sector has been a resilient performer for Abacus, recording 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%.
Despite the COVID-19 pandemic, a recent m3property report found yields have tightened by a circa 200 basis points, driven by solid fundaments.
The report also found the average rate per storage unit now stands at $22,152 – the highest level in a decade.
