The National Storage REIT, a self-storage operator based in Australia, agreed to get thirty facilities in various deals worth $301 million in total.
The 26-property portfolio that is operated by the Southern Cross Storage Group investment fund, which is also managed by NSR where it is an owner of a minority stake, is the main purchase. It also intends to purchase a 3-property portfolio located in Perth and a facility in Cairns. The total purchase includes 14,240 units and 138,400 net rentable square metres, based from its press release.
The Southern Cross portfolio
The Southern Cross portfolio extends throughout Australia, which includes 13,000 units and 126,000 net rentable square metres. This is going to be acquired at the amount of $285 million, as stated through the release. The unlisted investment fund launched during September 2011 from a joint venture of Heitman LLC and Neitman. Heitman LLC is an internal real estate investment and management company. It is the owner of 90% of the portfolio. However, the agreement allowed NSR to have rights to buy Southern Cross, based from the 201 yearly report of REIT.
According to Andrew Catsoulis, the Managing Director for NSR, the Southern Cross portfolio acquisition increases their asset based to 26 centres, with two special wine storage centres. He added that the acquisition also reinforces their position in the self-storage markets of Australia and New Zealand through the long term ownership of highly important assets. According to him, the assets complement to their current property portfolio and are incorporated to their platform.
The acquisition of other storage facilities
The 4 extra self storage facilities that the company agreed to purchase include 1,240 units and 12,400 net rentable square metres. They are going to be bought $16.1 million in total.
When it is already completed, the acquisitions are going to bring NSR 56,00 units and 523,000 square metres in Australia and New Zealand.
NSR is operating greater than 90 self storage facilities in Sydney and the rest of New South Wales, Queensland, Northern Territory, Victoria, Western Australia and South Australia. It is the first independent, fully integrated and internally managed owner-operator of self-storage centres recorded in the Australian Securities Exchange.