Abacus Property Group, an Australia-based, publicly traded, diversified real estate investment trust (REIT) with interests in self-storage, intends to create a separate REIT under the name Abacus Storage King (ASK) by de-stapling its existing assets. The resulting company would be listed on the Australian Securities Exchange under ASK and have a largely independent board of directors. Abacus Property Group would manage the REIT and retain a minority interest of up to 19.9% of its stapled securities, according to a press release.
ASK REIT would begin with a portfolio of 108 Storage King facilities comprising more than 568,000 square meters, plus 19 development properties and an expansion pipeline that will eventually add another 115,300 square meters. The gross asset value of the new REIT would be about $3 billion, the release stated.
“Abacus has deployed over $1.2 billion into self-storage assets over the last five years and has determined that the portfolio has reached a scale where it makes most sense to be separately listed with its own capital structure,” said Steven Sewell, managing director. “The creation of ASK as a dedicated self-storage REIT will provide security holders with pure-play exposure to the Storage King portfolio and operating platform. The self-storage market has attractive market fundamentals supported by macroeconomic tailwinds including an imbalance in supply and demand for self-storage space, densification of residential property, and the growth of e-commerce.”
The move requires approval by shareholders, who are expected to vote by the end of the second quarter. If approved, ASK REIT would begin trading on the stock exchange shortly thereafter, according to the release.
Under the new structure, Abacus Property Group would continue to own and manage its $2.6 billion portfolio of diversified real estate assets that includes office, residential and retail properties.
Sources:
Abacus Property Group, Proposed De-Stapling to Create a $3.0bn ASX Listed Self Storage REIT
Financial Review, Abacus Opens the Door to $3B Self-Storage REIT
