EG Funds Management Buys StoreLocal Self-Storage Facility in Northcote, Australia

EG Funds Management, an Australia-based real estate fund manager, has acquired a StoreLocal self-storage facility in Northcote, Australia, for $13.45 million from storage investment group StoreInvest. The asset at 150 Arthurton Road comprises 4,650 square meters of leasable space in 550 units. It’s the first acquisition made under Yield Plus Infrastructure Fund No. 2 (YPI 2), which was launched in August, according to a press release.

EG Funds Management, an Australia-based real estate fund manager, has acquired a StoreLocal self-storage facility in Northcote, Australia, for $13.45 million from storage investment group StoreInvest. The asset at 150 Arthurton Road comprises 4,650 square meters of leasable space in 550 units. It’s the first acquisition made under Yield Plus Infrastructure Fund No. 2 (YPI 2), which was launched in August, according to a press release.

Northcote is suburb of Melbourne. The self-storage facility is near a recently upgraded tram line as well as a train station and the city center. “The site is able to provide solid income with a longer-term development potential in the gentrifying suburb,” said Sean Fleming, associate director for EG Funds.

“The sale of the StoreLocal Northcote facility represented an ideal asset recycling opportunity for our investment group as the future residential redevelopment value opportunity is not within our mandate,” said Hans Pearson, director of StoreInvest. “Our strategy of adding value through expansion and then rezoning has provided our investors with an outstanding income and capital return since acquiring the asset in 2011.”

YPI 2 launched as “a $750 million real estate fund targeting yielding assets near new or upgraded infrastructure,” the release stated.

StoreLocal Pty. Ltd. merged with Fort Knox Self Storage last April, creating a $160 million portfolio of 38 facilities along Australia’s eastern coast. The combined portfolio included 33 Fort Knox locations and five StoreLocal properties. At the time of the merger, company officials indicated StoreLocal would continue to pursue acquisitions and development through StoreInvest, a managed-funds platform owned by Rob Mactaggart and Pearson.

The Australian StoreLocal is unaffiliated with StoreLocal Corp., a co-op of private self-storage operators in Canada and the United States.

Based in Sydney, EG Funds acquires, develops and manages assets with urban renewal potential. Its funds typically have a 10-year term. The company’s strategy is to “add value through active asset management, refurbishment, repositioning and/or rezoning, strata titling or redevelopment,” according to its website. Fund investors are predominantly Australian “superannuation funds,” along with insurance funds and high-net-worth individuals.

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