Singapore-based real estate company CapitaLand Group has sold its interest in the StorHub self-storage brand to an unidentified buyer for S$185 million. The move is part of an ongoing prioritization of capital allocation to core markets and sectors, such as office buildings, according to the source. The StorHub portfolio includes 11 locations in Singapore and one in Shanghai.
“The divestment of StorHub is in line with CapitaLand’s disciplined approach towards capital recycling,” said Jason Leow, president of CapitaLand’s Asia and retail business outside of China. “We will stay disciplined in recycling our assets for reinvestment and capital redeployment, with an annual divestment target of at least S$3 billion.”
Last year, the firm sold S$4 billion worth of assets and invested S$6.11 billion in new property. The StorHub divestment comes on the heels of a $391 million raising for a discretionary real estate equity fund, CapitaLand Asia Partners I (CAP I), the source reported. CAP I is expected to invest in “value-add and transitional office buildings” in major Asian markets including Beijing, Shanghai, Singapore and Tokyo.
Launched in 2003, StorHub has facilities across Singapore in Bukit Batok, Changi, Hougang, Kallang, Tampines, Toa Payoh and Woodlands. Its portfolio comprises more than 1 million square feet. CapitaLand acquired a majority interest in the brand in 2010 for S$39.2 million.
Deal Street Asia, Singapore’s CapitaLand Sells Self-Storage Subsidiary StorHub for $136M