Australian self-storage operator National Storage REIT (NSR) has agreed to purchase a four-story self-storage facility in South Melbourne, Victoria, for $12.5 million. It will be rebranded as National Storage South Wharf due to its proximity to established retail drivers in the area, according to a company press release.
The property comprises more than 4,800 square meters of rentable space in 720 units and a telecommunications tower. There are also apartments on the upper floor of the building that aren’t a part of the deal, which is expected to close this month, the release stated.
The acquisition will complement NSR's existing Port Melbourne and South Melbourne portfolio. Inner Melbourne is experiencing high demand for storage, the release stated. “The center is a landmark storage asset and will see National Storage expand its Melbourne presence to 26 centers,” said Andrew Catsoulis, managing director. “Given the asset's size and prominent location, the acquisition will enhance our brand awareness in Melbourne to both local and passing traffic.”
The purchase will be funded from NSR's debt facility. The company is actively pursuing opportunities in line with its acquisition and asset-management strategy, the release stated. NSR acquired a facility in Highett, Melbourne, for $17 million in March.
NSR operates more than 90 self-storage facilities 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.