This article is from the Australian Property Journal archive
NATIONAL Storage REIT (NSR) has bought a portfolio of self storage assets in Melbourne for $48.8 million, on a passing yield of 8.4% for the first year.
The portfolio comprises four properties, including:
– Glen Iris, 935 units over net lettable area of 4,950 sqm;
– South Melbourne, 700 units across with NLA of 4,370 sqm;
– Richmond – a leasehold asset comprising 690 units with NLA of 5,200 sqm; and
– Hawthorn – a leasehold asset comprising 850 units with NLA of 4,100 sqm.
Managing director Andrew Catsoulis said the acquisition will strengthen the group’s presence in inner Melbourne.
“This transaction is an excellent opportunity for NSR to further our reach in inner Melbourne with centres that present and operate to a very high standard, with average group occupancy over 80%.
“The leasehold centres will allow us to gain a foothold in areas experiencing urbanisation and good demand, where it would be difficult to secure freehold with a highest and best use as self-storage. The addition of these four centres will bring the number of centres owned or operated by NSR in Melbourne to 21” he added.
The transaction remains conditional and should it proceed, settlement is expected in January 2015.
Australian Property Journal
