10/06/2014 - 12:48

National Storage splashes $18.9m on Perth assets

10/06/2014 - 12:48

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National Storage splashes $18.9m on Perth assets
The Wangara Storage King facility, which has been bought by National Storage.

Eastern states-based storage group National Storage has acquired three Perth storage facility sites, in a portfolio transaction collectively worth more than $18.9 million.

The assets comprise a Storage King self-storage centre in Wangara, a 5,700 square metre development site in Kardinya, and the right to expand an existing National Storage leasehold facility in Yangebup.

The assets will be purchased by the group's ASX-listed investment fund, the National Storage Real Estate Investment Trust.

NSR said it would pay $10.9 million for the Wangara property, located at 25 Excellence Drive, while it would pay $8 million for the Kardinya site.

NSR will also receive project and development management fees as part of the Wangara transaction, in addition to incentives for the first year of the leasing period, which is expected to be from three to five years.

At Kardinya, NSR is planning to construct 417 storage units over 4,400sqm of the property, which is located at 24 Weatherburn Way.

The development cost at Yangebup will be paid by the vendor, with NSR to pay additional rent for an expanded lease on the new building.

The expansion at Yangebup will add about 1,800sqm of storage space across two levels of units.

“This will effectively double the capacity of the centre,” NSR managing director Andrew Catsoulis said.

“This project will allow future consideration of a portfolio recycling opportunity as our nearby Dobra Road, Cockburn site comprising 6,000sqm of land area may have a higher and better use.”

The transactions will be funded from existing debt facilities.

Mr Catsoulis said the acquisitions would allow the company to cement its position in the Perth market, while also providing for future portfolio management and asset recycling opportunities.

He said National Storage would continue to actively pursue additional acquisition opportunities in line with its asset management strategy. 

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