Storage operator Extra Space acquired by CapitaLand and APG Investments Asia JV
ESA was founded in 2007 and has actually become just one of the Asia-Pacific’s largest self-storage services, with approximately 70 owned including rented establishments across six Asian gateway metros. The portfolio comprises more than 1 million square feet of final lettable space, with an occupancy of over 90% including more than 70% of its final real estate income being generated in Singapore.
In a 90:10 mutual venture, APG including CLI have specifically dedicated an initial equity assets of $570 million with a choice to enhance their investment approximately $1.14 billion to finance the purchase of ESA and its expansion desires.
APG Investments Asia, the investment manager for the largest pension plan provider in the Netherlands, and CapitaLand Investment (CLI), an international real estate investment executive, have obtained storage platform Extra Space Asia (ESA).
Both firms also entered a joint endeavor to increase their brand-new acquisition right into an Asia-focused self-storage network. “CLI along with APG are fully devoted to the concept of producing a leading Asia-focused self-storage network that supplies long-term lasting value to clients,” says Patricia Goh, handling supervisor, Southeast Asia, CLI.
JLL suggested and helped the latest owners to handle the sale process of ESA. “In the present setting, self-storage [possessions provide] attractive and steady returns compared to standard real estate properties. It is a property course which is assumed to increase in Asia on the back of boosted fostering by customers with demand for more space at home, given recent functioning trends,” says Ting Lim, head of funding markets, Singapore, JLL.
Goh includes that the foothold obtained through acquiring ESA enables the partners to look at scaling the system with prospective mergers and procurements, as well as the conversion of existing properties into self-storage centers.