Hanison Construction Acquires Hong Kong Self-Storage Operator Minibox for $HK735M

Hanison Construction Holdings Ltd., a Hong Kong-based development and investment firm, has agreed to acquire Minibox Self Storage from two funds managed by real estate investment company The Blackstone Group Inc. As part of the HK$735 million deal, Hanison will purchase any equity and shareholder loans associated with Minibox as well as the business. Minibox operates two self-storage locations in Hong Kong, with the largest comprising 68,296 square feet, according to the source.

The Minibox assets are rebranded holdovers from when Blackstone acquired MiniCo Asia Ltd. in February 2015 for a reported HK$420 million. Minibox was controlled by investment vehicles Blackstone Real Estate Partners VII and Blackstone Real Estate Partners Asia.

The acquisition will allow Hanison to add the self-storage portfolio to four other industrial assets the company owns in Hong Kong. In 2018, Minibox had a net profit $17.9 million, up from $7.6 million in 2017, the source reported.

“The directors consider that the acquisition is a valuable investment opportunity for the group,” Hanison officials said in a released statement. “Accordingly, the directors believe that the acquisition will enable the group to strengthen and enhance the property investment portfolio.”

Blackstone agreed to pay for any rectification work at the self-storage properties that was registered with the Hong Kong Lands Department prior to the sale.

Hanison specializes in property construction, development, investment and management. The company is majority-owned by the Cha Family, which also holds a majority stake in developer Hong Kong Resorts International, according to the source.

Blackstone has $545 billion in global assets under management. Its investment vehicles focus on private equity, real estate, public debt and equity, non-investment grade credit, and secondary funds.

Source:
Mingtiandi, Blackstone Sells HK Self-Storage Business to Hanison For HK$735M