photo: Lock N Store
Kingsmede Partners, a leading property investment firm, has announced the upcoming sale of three, rare self-storage facilities situated in Perth's expanding southern corridor.
The decision comes amidst unprecedented interest from both offshore and local investors, driven by compelling market metrics and promising growth prospects both at asset level and across the booming Australian self-storage sector.
According to data published by the Self-Storage Association of Australia, only 15 storage facilities traded in 2023. This historical low is set against unprecedented demand from institutional capital for exposure to the sector. Warburg Pincus’ StorHub, last week announced $460m of fresh equity commitments for Australia.
The portfolio includes 740 units over 9,726sqm of NLA, 80% of which is drive-up units. The combined land holding of some 1.92 hectares, provides a rare opportunity of immediate scale in am undersupplied, land constrained market.
For sale through Ben Younger and Nick Goodridge of Cushman & Wakefield, the portfolio of facilities has undergone substantial upgrades aimed at enhancing security, fire safety, driveways, IT infrastructure, and roofing. The portfolio, now poised for sale, is expected to generate significant national and offshore interest given the value upside this walk-up opportunity of scale presents.
The properties, strategically located at 10-12 Carlston Rd, Rockingham; 135A Dixon Rd, East Rockingham; and 6 & 20 Fitzgerald Rd, Greenfields, are strategically positioned in Perth southern metropolitan corridor and surrounded by a growing population catchment.
Cushman & Wakefield confirmed the assets maintain stabilised occupancy rates averaging 85%, and currently generate an annual gross income of approximately $2.4 million, with rates approximately 20% below market there is meaningful upside.
Commenting on the market dynamics, Ben Younger remarked,
"The surge in demand for self-storage across Australia reflects a profound shift influenced by consumer culture, the exponential growth of e-commerce, diminishing living spaces, and a burgeoning population. Individuals and families are increasingly seeking secure and convenient storage solutions for their personal belongings."
Echoing Mr. Younger’s sentiments, Nick Goodridge added,
“Strategically embedded opportunities for value creation, stemming from occupancy growth and genuine rate reversion, further enhance this exceptional proposition. Coupled with the favorable population growth rates in Rockingham and Mandurah, which surpass the Western Australia average by over 93%, these assets are poised for an exciting future.”
The properties are being sold exclusively by Cushman & Wakefield via an “Offers Invited” Closing 4pm (AWST) Thursday 11 April 2024 and are available in one line or as individual offerings.
