Asia-focused Self-storage Platform
CapitaLand Investment (CLI) has partnered APG to establish an Asia-focused self-storage platform that rides on the growing demand for self-storage services in Asia, fuelled by high urbanisation rates, high population density, an increasing proportion of renters and an explosive growth of ecommerce. Starting with an equity investment of S$570 million with an option to increase up to S$1.14 billion, in the proportion of 90:10 between APG and CLI, the joint venture provides CLI with access to an emerging sector that also contributes towards growing its funds under management and fee-related earnings.
The platform has acquired Extra Space Asia (ESA), one of the region’s largest self-storage businesses with over 1 million square feet of net lettable area with more than 100 facilities in six Asian gateway cities – Hong Kong, Kuala Lumpur, Seoul, Singapore, Taipei and Tokyo. The acquisition of ESA comes with an experienced management team holding a proven track record in sourcing and managing quality self-storage facilities.
In Japan, ESA owns 14 self-storage facilities across Osaka and Tokyo – the two largest markets for self-storage in the country. Through a strategic partnership with Ambitious (the largest indoor self-storage manager in Japan) and Keiyo Logistics (an established operator which develops and manages high quality trunk rooms in the Tokyo metropolitan area), ESA benefits from the expertise of both self-storage managers with extensive networks to boost its growth and deliver exceptional storage solutions in Japan.
