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Case Study

Extra Space (Asia)

The Extra Space investment portfolio was established in 2006 by USSFM founders Robert and Jonathan to take advantage of the self storage investment opportunities in key Asian markets. 

Project Overview

The Extra Space portfolio consisted of 4 self storage facilities in Singapore, 1 in Malaysia and 1 in South Korea, with a combined net lettable area of over 450,000 sq ft.

Project Value

To fund the developments, investors contributed $24 million (AUD) and were returned $48 million (AUD) over a 5 year period. Debt was sourced in the local currency at a LVR of 55%.

Investment Opportunity

  • Market Opportunity
  • Strategy
  • Portfolio
  • Outcomes

extraspace

01Identify Asian markets where key demand drivers are emerging or present and supply favourable opportunities

02To provide residential and commercial self storage space at 3 times the current industrial property yield

03Opportunity to develop a brand that is meaningful, defensible and scalable to the whole Asian community where the property opportunity exists

04Early mover opportunity in dynamic Asian economies

05Taking advantage of low industrial property prices

singapore

ALeverage the product market knowledge and product expertise of Steel Storage

BDevelop a brand that is Asian in its style but Western in its origin

CFind end of life industrial buildings and give them higher and better use

DCreate a financial model that will give investors a high return and customers a great experience

ERapidly develop critical market share and coverage

portfolio

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marketopportunity

01First site acquired February 2007 and opened June 2007

02Funded by Australian equity - from an opportunistic Private Equity fund and Steel Storage.

03Local partner in Singapore; sole investor in Korea and Malaysia.

046 facilities developed in 3 major Asian markets

05A 20% IRR, post currency, over a 5 yr. investment period


Australia Prime Storage Fund (Australia)

The Australian Prime Storage Fund (APSF) was established in 2015 to develop and own state of the art self storage centres located in the major capital cities centres on the east coast of Australia. APSF was a joint venture between Universal Self Storage Prime Storage Fund (USSPSF) (75.1% ownership) and National Storage (NSR) (24.9% ownership).

Fund Overview

Established to develop new, marketing leading self storage centres within 10 kms of the major cities of east coast Australia and New Zealand. At its peak the APSF portfolio consisted of 4 self storage facilities in Kelvin Grove (QLD), Albion (QLD), Carrara (QLD) and Canterbury (Victoria), with a combined net lettable area of 23,400 sqm.

Total Project Value

The Total Development Cost of the APSF Portfolio was $56.8m. Debt was sourced at an LVR of approximately 50% of the Project Value. Equity was raised by USSFM from NSR and USSPSF.

Investment Opportunity

  • Market Opportunity
  • Strategy
  • Portfolio
  • Outcomes

extraspace

01Undersupply of new prime quality self storage centres in the high consumer density areas of major cities in Australia

02Opportunity to partner alongside industry leading participant in the development of a new portfolio of modern self storage centres

03Attractive rental rates in the major city centres on the east coast of Australia

singapore

01Leverage the development experience of USSFM with the operating expertise of National Storage

02Strong alignment of interests with co-ownership of each of the APSF centres

03Maximise investor returns throughout the entire project lifecycle from development through to stabilised occupancy

  • Approximately 5,700 sqm of net lettable area
  • 3 levels; light steel construction
  • Large, high quality reception and retail area
  • Automated site access, security and individual unit alarms
  • Dehumidified storage unit offering
  • Solar powered
  • Approximately 6,340 sqm of net lettable space over 4 levels
  • Large, high quality reception and retail area
  • Automated site access, security and individual unit alarms
  • Dehumidified storage unit offering
  • Solar powered
  • Approximately 5,500 sqm of net lettable space
  • 5 levels; light steel construction
  • Large, high quality reception and retail area
  • Automated site access, security and individual unit alarms
  • Dehumidified storage unit offering
  • Solar powered
  • Approximately 5,900 sqm of nla over 5 levels.
  • Large, high quality reception and retail area
  • Automated site access, security and individual unit alarms
  • Solar powered

facilities

01USSFM identified, designed and developed 4 centres with over 23,000 sqm of industry leading self storage space on behalf of APSF

02USSPSF successfully exited its 75.1% ownership in APSF via a negotiated sale to National Storage in late 2019

03USSFM raised $24.5m via USSPSSF to invest in APSF

04Investment returns, as measured by levered IRR, of greater than 15% at the project level

05A total return to investors of 1.43x times monies invested

06A pre-tax total internal rate of return (IRR) of approximately 11% (post fees) over a 4-year investment timeframe

 

Creating investment opportunities in global self storage markets.