InfraRed NF, a Hong Kong-based real estate investment fund operated by a joint venture, has pumped $106 million into RedBox Storage Ltd. since acquiring a 90 percent stake in the company last year. The infusion has helped fund several acquisitions and grow RedBox into the third largest self-storage operator in Hong Kong, with more than 10 percent market share, according to a press release.
RedBox acquired three self-storage properties this summer as well as the three-facility MiniBox Storage portfolio in September, which added 103,000 square feet to its footprint. The company’s portfolio now comprises 469,000 square feet and serves more than 5,000 customers, the release stated.
“With market dynamics remaining attractive, we see further opportunities to grow and for RedBox to demonstrate the value of self-storage as an investment,” said Stuart Jackson, CEO of InfraRed.
“We are very proud of what has been achieved to date, which would not have been possible without the ongoing support of InfraRed,” added Simon Tyrrell, CEO of RedBox. “Within this partnership, we see further exciting opportunities for expansion of the portfolio and further improvement of the operating systems and processes to deliver a continually high standard of service for our customers and stakeholders.”
Founded in 2014 by E3 Capital Partners, RedBox operates six self-storage locations in Hong Kong in addition to offering valet-storage and moving services.
Launched in 2007, InfraRed NF is a joint venture between global investment manager InfraRed Capital Partners and Vervain, a diversified, private real estate company founded in 2004. It specializes in mezzanine financing and value-add investing. The fund has invested more than $1.75 billion through 23 transactions in Greater China, including a $28 million investment in China Mini Storage in 2017.