Blackstone Sells Perth Self-Storage Assets to BlackRock’s StoreLocal for Over $101M

Global investment managers continue to find gold in self-storage units, with StoreLocal, a mini-shed platform controlled by BlackRock, announcing on Wednesday that it has agreed to acquire a set of properties in Perth, Australia from entities controlled by Blackstone.

StoreLocal purchased a portfolio of five properties operated by Western Australia’s KeepSafe, with a statement by the Queensland-based company putting the deal price at over A$150 million ($101 million). In a statement, StoreLocal’s leadership tied the acquisition to a plan to build an A$2 billion nationwide business as had been laid out when BlackRock paid around A$400 million to take control of StoreLocal in May last year. 

“We are continuing our long-term strategy of building out a nationwide platform of institutional quality assets, which offers outstanding risk-adjusted returns through a highly diversified tenant base, low capex, and high operating margins,” StoreLocal co-founder and CEO Hans Pearson said in a statement. “With the continued support of the BlackRock team we have been able to accelerate our strategy and goals.”

StoreLocal and BlackRock are expanding their footprint as the self-storage sector grows in favour with institutional investors, with Brookfield Asset Management and GIC tying up last month to launch a buyout offer for Australia’s largest player in the segment, National Storage, which valued the company at A$4 billion ($2.6 billion). 

Five Western Australia Locations

StoreLocal’s acquisition adds five facilities to its portfolio which Blackstone acquired in 2021 through its DBI Storage business in Australia in a deal valued at A$84 million, according to press accounts at the time. 

The properties have been operated under the KeepSafe brand, with that company’s website showing Western Australia locations in the towns of Balcatta, Belmont, Joondalup, O’Connor, Wangara and Welshpool. StoreLocal did not release additional details of the properties, and Blackstone representatives declined to comment on the transaction. 

Blackstone had retained CBRE to market the assets last year at a target value of around A$200 million. Around 20 groups initially showed interest in the portfolio, according to local press accounts at the time. 

StoreLocal’s website already shows locations in the Western Australia towns of Davenport, Busselton, Ellenbrook and Port Kennedy, with the company positioning this latest acquisition as a way to improve its national coverage.

“By adding to our existing multi-store Perth portfolio we are now the largest operator in the West and we are well-positioned to service this fast-growing demographic,” Pearson said, while pointing to the deal as proof of his team’s transactional capabilities. 

Funds managed by BlackRock Real Estate have committed over A$1 billion to help StoreLocal growth both through acquisitions and new development, the company said. 

StoreLocal is also growing its business as a third-party manager of self-storage facilities, with the company announcing that the value of its platform has “approximately doubled,” since it was acquired by BlackRock. StoreLocal now ranks as Asia Pacific’s fourth largest self-storage operator, according to its statement, including ownership or management rights for more than 45 locations in Australia, including this latest acquisition. 

Hot Sheds

StoreLocal announced its Western Australia acquisition as Storhub, a self-storage venture backed by Warburg Pincus, is reportedly in talks to bring in a capital partner to grow its Asia Pacific business. While those discussions are still in the early stages, a potential deal could value the Singapore-based business at $1.5 billion.

In October, another Singapore-based player, CapitaLand Investment-controlled Extra Space Asia, said that it would be investing nearly S$100 million ($77 million) to fund the development of its first build-to-suit project in Singapore, as well as to acquire three facilities in Tokyo.

US fund manager Barings announced in July that it was acquiring a majority stake in Swift Storage, a self-storage operator based in Brisbane, for A$200 million, as it expands its bets on the sector in Australia.