What's Happening?
StoreLocal, a self-storage platform controlled by BlackRock, has announced the acquisition of a portfolio of properties in Perth, Australia, from Blackstone. The deal, valued at over A$150 million ($101
million), involves five properties operated by KeepSafe. This acquisition is part of StoreLocal's strategy to build a nationwide business valued at A$2 billion. BlackRock had previously acquired StoreLocal for around A$400 million. The acquisition adds to StoreLocal's existing portfolio, making it the largest operator in Western Australia. The properties were initially acquired by Blackstone in 2021 for A$84 million. StoreLocal's expansion is supported by BlackRock's commitment of over A$1 billion for growth through acquisitions and new developments.
Why It's Important?
The acquisition highlights the growing interest of institutional investors in the self-storage sector, which is seen as offering high returns with low capital expenditure and high operating margins. This trend is evident as other major players like Brookfield Asset Management and GIC are also investing heavily in the sector. For BlackRock, this acquisition strengthens its position in the Asia Pacific region, particularly in Australia, where the demand for self-storage is increasing. The deal also underscores the strategic importance of self-storage as a resilient asset class, especially in times of economic uncertainty, providing stable income streams and diversification for investors.
What's Next?
StoreLocal plans to continue its expansion in Australia, leveraging BlackRock's financial backing to acquire more properties and develop new facilities. The company aims to enhance its national coverage and service the growing demand in Western Australia. As the self-storage sector continues to attract investment, other players like Storhub and Extra Space Asia are also exploring expansion opportunities in the Asia Pacific region. This competitive landscape may lead to further consolidation and strategic partnerships as companies seek to capitalize on the sector's growth potential.
