This article is from the Australian Property Journal archive
PAN-Asian operator StorHub Group has taken another big step into Australia, snapping up Sydney facilities worth more than $110 million, in one of the country’s largest self-storage sector transactions in recent years.
StorHub netted $460 million in equity commitments early this year to launch into the Australian market. Its five seed assets totalled 56,210 sqm of gross floor area, and following this deal will have 110,000 sqm of gross floor area and more than 8,500 storage units across Australia, with the total estimated end value of the portfolio at over $420 million.
“The Australian market presents significant opportunities for StorHub, driven by strong population growth, rising housing costs in metropolitan areas, and the increasing need for decluttering in the hybrid work environment post-pandemic,” said Raju Ruparelia, StorHub group CEO.
The metrics of Australia’s self-storage market recently attracted the investment of Singapore’s sovereign wealth fund GIC, which teamed up with major operator National Storage to commit $270 million to acquire and develop centres across the country.
Storhub’s newly acquired facilities are located in the suburbs of Homebush, Forestville, and Revesby. Collectively, they offer more than 18,000 sqm of net lettable area and nearly 2,000 storage units.
The Homebush site, situated at 201 Parramatta Road, features an 5,648 sqm of net lettable area across 698 units; the Forestville facility at 11 Cook Street offers 5,170 sqm, accommodating 667 units; and the Revesby facility at 128 Milperra Road provides 621 storage units within a 6,354 sqm.
Developed and owned by Trumen and Norman Property Partners and currently managed by Wilson Storage, each of the facilities will be transitioned to be under StorHub’s management and branding going forward.
The transaction was brokered by Four Leaves Property.
StorHub now has 11 facilities in Sydney, Melbourne, and Brisbane – four in operation and seven to be opened within the next couple of years.
Simon DeGaris, CEO of StorHub Australia, said, “We are pleased to incorporate these well-located self-storage facilities into our portfolio, enabling us to offer reliable and secure storage solutions to a broader customer base”.
StorHub Group was launched in 2019 by investment giant Warburg Pincus. It has operations in countries including Singapore, Japan, Malaysia, South Korea, mainland China, Hong Kong, and Australia.
After a subdued year or two, commercial real estate transaction volumes are picking up, after a 18% increase over the last six months compared to the same time last year.
