CapitaLand Investment’s Extra Space Asia Spending $77M to Grow in Singapore, Tokyo

Extra Space Asia, a self-storage platform of Singapore’s CapitaLand Investment, is spending nearly S$100 million ($77.3 million) to fund the development of its first build-to-suit project in the Lion City and the acquisition of three facilities in Tokyo.

Extra Space recently acquired a land parcel at Kaki Bukit Avenue 5 in Singapore’s Bedok area to develop a 185,000 square foot (17,187 square metre) facility, Temasek-controlled CapitaLand Investment said Thursday in a release. The project marks the first industrial land sale by the government’s Jurong Town Corporation for self-storage use and will expand Extra Space’s Singapore portfolio to 13 properties with over 1.5 million square feet of gross floor area.

CapitaLand Investment teamed with Dutch pension fund manager APG three years ago to acquire Extra Space for S$1.14 billion (then $810 million). At that time the Singapore-based mini-storage platform owned, leased and operated more than 70 facilities spanning over 1 million square feet of space across six Asian nations.

“Since partnering with APG Asset Management in 2022 to acquire ESA, we have deployed more than S$500 million in equity to grow ESA’s portfolio from 70 to more than 100 facilities, totalling 3 million square feet, solidifying its position as one of Asia’s foremost self-storage operators,” said Patricia Goh, CEO of Southeast Asia investment and head of logistics and self-storage at CapitaLand Investment.

Eastern Promise

Scheduled for completion by 2028, the Kaki Bukit Avenue facility will occupy a site just south of the former Paya Lebar airbase in eastern Singapore and is positioned to exploit population growth in Tampines West and the development of a new town in Paya Lebar from 2030.

The facility will feature ambient and wine storage options and serve as a test bed for Extra Space to incorporate Internet of Things capabilities and a virtual analytics security system, according to CapitaLand Investment.

The latest Singapore acquisition follows Extra Space’s purchase of two industrial assets in Tai Seng and Commonwealth for S$100 million in February of last year, with both properties since converted into self-storage facilities.

The acquisition of the three Tokyo assets brings Extra Space’s presence to a total of 13 assets in the capital and 17 facilities in Japan totalling over 60,000 square feet of gross floor area. The buy follows the purchase of four Osaka facilities late last year and two in Tokyo in early 2025.

“We aim to grow ESA’s portfolio to S$2 billion by 2028, capitalising on the strong demand driven by rising urbanisation, accelerating e-commerce consumption, and increasing space constraints in densely populated cities,” said Tim Alpe, managing director and head of Extra Space Asia.

Blackstone Eyes Oz Exit

Extra Space’s self-storage rivals in Asia Pacific include StorHub, which CapitaLand Investment sold to Warburg Pincus in early 2019 for S$185 million, as well as Brookfield’s Hong Kong-based RedBox and Blackstone-backed Storefriendly.

Blackstone is said to have drawn about 20 groups to bid for the private equity giant’s Western Australia self-storage business, according to an account this week in The Australian.

The assets were acquired five years ago for A$80 million and Manhattan-based Blackstone is now seeking A$200 million ($130.2 million) for the portfolio, the newspaper reported. The potential buyers include Aussie platforms National Storage REIT, Abacus Storage King and Barings-backed Swift Storage, with CapitaLand Investment also expected to take a look, said The Australian.