Australian self-storage operator National Storage REIT (NSR) has agreed to purchase three self-storage facilities in Sydney-area suburbs for $10.7 million, which will be funded by the company’s debt facility. The portfolio has long-term lease tenure ranging from 30 to 60 years. The transaction is expected to close in October, according to a company press release.

The facilities are in Camperdown, Pymble and Seven Hills/Toongabbie, New South Wales. The two-building Camperdown property comprises 5,300 square meters of storage space in 690 units. The Pymble facility is below ground, encompassing more than 3,500 square meters of storage space in 360 units. The Seven Hills/Toongabbie property includes more than 4,800 square meters of storage space in 360 units. It also has 120 shipping containers as alternative storage.

“This portfolio acquisition will strengthen our Sydney footprint, bringing the total number of centers owned or operated by NSR in New South Wales to 13. There’s the opportunity to add value via our management platform and to consider portfolio recycling opportunities in Seven Hills/Toongabbie given the proximity to our existing center in Seven Hills,” said Andrew Catsoulis, managing director.

"Leasehold continues to be a strategic acquisition methodology which can help facilitate our growth in markets like Sydney, where it can be difficult or cost prohibitive to acquire the underlying freehold of properties in high-density locations,” Catsoulis added. “This strategy enables us to grow our presence and provides long-term secure business tenure in Sydney, which is a key expansion market for NSR.”

Last month, NSR acquired a storage facility in Cairns, Queensland, for $9.9 million. The company raised $57.5 million in April through a share placement.

NSR operates 87 self-storage centers in New South Wales, Northern Territory, Queensland, South Australia, Victoria and Western Australia. It’s the first independent, internally managed and fully integrated owner and operator of self-storage centers to be listed on the Australian Securities Exchange.

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