Abacus Property Group (ABP) has acquired a portfolio of self storage assets managed by Storage Kings in Sydney for $160 million.
The portfolio of five assets provides more than 25,000 square metres of net lettable area and comprises three stores located in Chatswood, Artarmon and St Leonards.
The assets are located within tightly held catchments, benefitting from significant self storage demand generated from above average household incomes, large proportions of renters and continually increasing density from apartment development”
It also includes a site in Dee Why and a newly developed store in Pymble.
The five assets are expected to be settled on August 3, with the acquisition to be funded from existing debt facilities.
Abacus has self storage properties located on Australia’s east coast and throughout New Zealand and fully owns the Storage King platform.
Abacus managing director Steven Sewell said demand for self storage space is increasing.
“The assets are located within tightly held catchments, benefitting from significant self storage demand generated from above average household incomes, large proportions of renters and continually increasing density from apartment development,” he said.
“The transaction also demonstrates the sustained acquisition pipeline generated from the Storage King platform.”
In its HY 21 report, Abacus said it had 92 self storage assets with a valuation of $1.5 billion.
“This transaction aligns with our strong asset backed, annuity style business model where capital is directed towards assets in key sectors that provide potential for enhanced income growth and ultimately create value,” Mr Sewell said.
“Our people, market insight and repositioning capability together with customer focused brand management are the key enablers of our strategy.”
The acquisition comes after the company informed the market last week that it had exchanged contracts to acquire a one-third interest in Myer’s Bourke Street property for $135.2 million.
