This article is from the Australian Property Journal archive
PROPERTY investment firm Kingsmede Partners is looking to offload three rare self-storage facilities in Perth’s growing southern corridor, amidst interest from both local and international investors.
The portfolio includes 740 units across 9,726sqm of NLA, with drive up units accounting for an 80% share.
With the three properties located at located at 10-12 Carlston Road, Rockingham, 135A Dixon Road, East Rockingham and 6 & 20 Fitzgerald Road, Greenfields, making up a combined landholding of 1.92-hectares.
Ben Younger and Nick Goodridge from Cushman & Wakefield have been appointed to sell the portfolio for Kingsmede via Offers Invited sales campaign, in one line or as individual offerings.
“Strategically embedded opportunities for value creation, stemming from occupancy growth and genuine rate reversion, further enhance this exceptional proposition,” said Goodridge.
“Coupled with the favorable population growth rates in Rockingham and Mandurah, which surpass the Western Australia average by over 93%, these assets are poised for an exciting future.”
The facilities have undergone significant upgrades targeting enhanced security, fire safety, driveways, IT infrastructure, and roofing.
With the assets also maintaining stabilised occupancy rates averaging 85% and generating an annual gross income of around $2.4 million, with rates approximately 20% below market.
“The surge in demand for self-storage across Australia reflects a profound shift influenced by consumer culture, the exponential growth of e-commerce, diminishing living spaces, and a burgeoning population,” said Younger.
“Individuals and families are increasingly seeking secure and convenient storage solutions for their personal belongings.”
Just 15 storage facilities traded in 2023, a historical low against rising demand from institutional capital for exposure to the sector, according to data published by the Self-Storage Association of Australia.
While Pan-Asian self-storage owner and operator StorHub Group netted $460 million in equity commitments to launch into the Australian market, seeding five assets in Sydney, Melbourne, and Canberra earlier this month.
The properties are being sold exclusively by Cushman & Wakefield via an Offers Invited campaign scheduled to close 11 April 2024. With the assets available in one line or as individual offerings.
