Singaporean company GIC is entering the Australian self-storage sector through the NSR | partnership News

Singapore-based GIC has entered the Australian self-storage market through a A$270 million (€166 million) joint venture with ASX-listed National Storage REIT (NSR).

GIC will be the majority partner with a 75% stake in the National Storage Ventures Fund (Ventures JV) and NSR will hold the remaining 25%.

The Ventures JV will develop and operate self-service centers across Australia and aims to mobilize approximately A$270 million in an initial 12-18 month period.

It will acquire and develop the foundation’s initial portfolio of 10 assets from NSR’s existing development portfolio. The sale of this portfolio is expected to generate proceeds of A$120 million for NSR, which will be used to repay debt.

National Storage is the largest self-storage provider in Australia and New Zealand, with over 250 locations serving approximately 90,000 residential and commercial customers.

Managing Director Andrew Catsoulis said: “Collaborating with a respected investment partner like GIC on the new National Storage Ventures Fund represents a significant opportunity for National Storage to accelerate and diversify its development processes and increase operational scale while maintaining conservative levels of fund utilization.

“The Ventures JV will help NSR maintain a stable earnings path by accelerating its growth process and stabilizing new assets.”

NSR said the initial term of the Ventures JV was to be not less than five years, with the possibility of extension by mutual consent.

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