Australia-based self-storage operator National Storage REIT (NSR) has entered the Wellington, New Zealand, self-storage market with the purchase of two facilities for $25 million. The transaction is expected to close later this month, according to a company press release.
The first asset is in Newtown just south of the Wellington Central Business District. It comprises 3,600 square meters of net rentable area in more than 850 units. The second site, in Hutt City, offers 4,500 square meters of net rentable area in more than 600 units. It also includes 13 retail-complex tenants.
“This acquisition provides the foundation for our entry into the Wellington market and further entrenches National Storage in New Zealand, bringing the total number of New Zealand centers to eight,” said Andrew Catsoulis, managing director. "Both are established and well-located with prominent exposure to passing traffic, and have few competitors in close proximity. Expanding our New Zealand presence will allow us to drive efficiencies across our operating platform and continue to develop our brand awareness.”
The acquisitions will be funded from NSR's debt facility. They also represent a milestone for NSR: The company now manages, operates or owns 100 storage properties in Australia and New Zealand. “We have worked hard to execute 38 transactions since listing in December 2013, and will continue to actively pursue our acquisition strategy to grow our portfolio and deliver value for our investors,” Catsoulis said.
NSR entered the New Zealand market last fall with the purchase of a self-storage facility in Hamilton. The company is actively pursuing opportunities in line with its acquisition and asset-management strategy, the release stated.
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.