CapitaLand Investment/Extra Space Asia Expands Japan Self-Storage PortfolioCapitaLand Investment/Extra Space Asia Expands Japan Self-Storage Portfolio

CapitaLand Investment Ltd. (CLI), which operates the Extra Space Asia (ESA) self-storage brand, is expanding its portfolio in Japan through a strategic alliance with local operator Ambitious Co. Ltd. CLI has already purchased four Osaka facilities from its new partner and intends to buy two more in Tokyo by early 2025. It now has 14 sites in the country comprising more than 60,000 square feet, according to sources.

The venture will enable CLI to leverage the Ambitious capacity to source, develop and manage self-storage properties, sources reported. CLI will also have a right of first refusal to acquire future facilities developed by the Japanese operator, which has 681 locations in 126 cities and districts under the “Syuno-Pit” (Storage Pit) brand.

CLI previously partnered with Japanese self-storage operator Keiyo Logistics Co. Ltd. under the "Private Box by Extra Space" brand. By leveraging these two alliances, the company said it plans to invest in and eventually triple its storage portfolio in the country, reaching more than $107 million, a source reported.

“ESA’s strategic partnerships with Ambitious and Keiyo Logistics will enable us to capitalize on the increasing demand for self-storage space, driven by growth in e-commerce, rising urban population, smaller dwelling spaces, increased population mobility and a higher proportion of rental households,” said Patricia Goh, CEO of Southeast Asia investment for CLI.

Related:My Very First Self-Storage Acquisition: Lessons I Learned and Investing Mistakes to Avoid

“Ambitious operates the largest number of indoor trunk-room facilities under the ‘Syuno-Pit’ brand, and is recognized for delivering stable investment returns, a strong management track record, development expertise and marketing capabilities,” said Nobunari Tokunaga, CEO of Ambitious. “By combining with ESA’s financial resources, Ambitious aims to invigorate Japan’s evolving trunk-room market, accelerate development projects, attract more customers, and enhance local communities and living environments.”

CLI has a portfolio of more than 70 lodging, office, logistics and self-storage properties. It has $2.7 billion in total funds under management of in Japan.

ESA operates more than 80 self-storage facilities in Hong Kong, Kuala Lumpur, Osaka, Seoul, Singapore, Taipei and Tokyo comprising more than 2.3 million square feet.

Sources:
CapitaLand Group, CapitaLand Investment-Managed Extra Space Asia Enters Into a Strategic Alliance With Japan’s Largest Indoor Self-Storage Manager to Accelerate Growth
Singapore Business Review, CLI Expands Japan Self-Storage Portfolio With New Acquisitions, Partnership

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