General Storage Co. Pte. Ltd. (GSC), which operates four self-storage facilities in Singapore under the Lock+Store brand, has purchased four storage properties in Hong Kong from The Store House for approximately $12.12 million SGD. Three of the facilities are on Hong Kong Island and one is in the New Territories region, according to the source.
The acquisition is part of GSC’s strategic expansion plan, CEO Helen Ng said. The company announced plans in April to double its Singapore footprint as well as open its first asset in a foreign market with a location in Malaysia. The Malaysian facility is scheduled to open this fall, according to the source.
Ng told the source GSC will look to expand The Store House’s footprint as opportunities arise. Self-storage consumer market penetration in Hong Kong is similar to that of Singapore, although Hong Kong facilities are typically smaller, owned by franchises and built near rapid transit, she said.
Rising property prices and development issues in Singapore and Hong Kong are limiting expansion possibilities, according to Ng. “In both Singapore and Hong Kong, the self-storage industry has great growth potential with rising consumerism and affluence. However, there are risks on the horizon,” she told the source. “In Hong Kong, there is limited supply of industrial buildings in established populated catchment areas, as Hong Kong allows industrial buildings to be converted into commercial buildings such as hotels. More buildings are being converted, as their value can sometimes quadruple overnight. This, coupled with the fact that no new industrial buildings are being built, has resulted in a diminishing supply of buildings for industrial use.”
GSC is owned by Singapore Post Ltd. (SingPost), the national postal-service provider in Singapore. SingPost acquired the storage company last year.