Australian self-storage operator National Storage REIT (NSR) has agreed to purchase a five-property portfolio in Christchurch, New Zealand, for $23 million. The properties are in the communities of Belfast, Ferrymead, Hornby, Opawa and Redwood. NSR officials expect the assets to add to the company’s earnings per share in the first year, according to the source. The deal is expected to close in August.
"The New Zealand market remains highly fragmented with no dominant major owner," Andrew Catsoulis, managing director, told the source. "We have been reviewing the fundamentals of the New Zealand market for some time, and they are highly attractive and fit squarely within NSR's acquisition metrics."
The deal is the company’s first acquisition since it raised $57.5 million in April through a share placement. NSR officials indicated at the time of the placement that they would use the funds to reduce existing debt and pursue acquisitions. The storage operator previously raised $46 million in capital in August 2014.
Catsoulis indicated the company would continue to pursue acquisitions in New Zealand.
NSR operates 80 self-storage centers 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.