GIC Partners With National Storage REIT to Launch Australia Self-Storage Expansion Fund

June 18, 2024

1 Min Read

Singapore real estate investor GIC is partnering with Australia-based National Storage REIT (NSR) to launch the National Storage Ventures Fund, which will develop self-storage facilities in Australia. The partnership will invest A$270 million over 12 to 18 months to construct 10 projects from within NSR’s seed-development portfolio, according to sources.

The joint venture has an initial term of five years. GIC will hold 75% equity interest, while NSR will acquire and develop self-storage facilities on behalf of the joint venture and earn service fees. The trust is expecting A$120 million in net sale proceeds from the acquisition of the seed assets. NSR will distribute 90% to 100% of its underlying earnings to the venture and maintain a minimum earnings per security of 11 cents, a source reported.

“Partnering with a respected investment partner such as GIC in the new National Storage Ventures Fund represents a significant opportunity for [NSR] to accelerate and diversify its development pipeline and increase operational scale while maintaining a conservative level of gearing,” said NSR Managing Director Andrew Catsoulis.

NSR has more than 250 locations in Australia and New Zealand. The company was the first independent, internally managed and fully integrated owner and operator of self-storage centers to be listed on the Australian Securities Exchange.

GIC is a global, long-term investor that was established in 1981 to manage Singapore’s foreign reserves. The company invests in more than 40 countries worldwide.

Sources:
Tip Ranks, National Storage REIT Launches New Expansion Fund
Mingtiandi, Singapore’s GIC Teams With Aussie REIT for $179M Self-Storage JV

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