Australia self-storage operator StoreLocal, which is controlled by funds managed by BlackRock Real Estate, has acquired a portfolio of five KeepSafe Storage properties in Perth, Australia, from private-equity firm Blackstone Inc. for A$150 million. They've been rebranded as StoreLocal, according to sources.
Blackstone announced in October that it was preparing to sell its self-storage portfolio in Western Australia and was seeking A$200 million. The offering included the five KeepSafe facilities the company had purchased when it entered the Australian market in 2021. About 20 companies expressed in the acquisition, including BlackRock, which entered the self-storage sector last year by purchasing StoreLocal for an estimated A$400 million, and Kennards Self Storage, which operates 126 facilities in Australia and New Zealand, sources reported.
StoreLocal officials said that since the BlackRock transaction, their platform value has approximately doubled. BlackRock has committed more than a A$1 billion in capital, with the intention to create a self-storage portfolio valued at more than A$2 billion while expanding the StoreLocal third-party management operation, the sources reported.
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“We are continuing our long-term strategy of building out a nationwide platform of institutional quality assets, which offers outstanding risk-adjusted returns through a highly diversified tenant base, low capex and high operating margins,” said Hans Pearson, cofounder and CEO of StoreLocal. “By adding to our existing multi-store Perth portfolio, we are now the largest operator in the West, and we are well-positioned to service this fast-growing demographic.”
“Since BlackRock acquired a majority interest in StoreLocal eight months ago, the platform has scaled meaningfully, driven by selective, high-value acquisitions such as the KeepSafe portfolio. This operating scale is underpinned by StoreLocal's leading innovation, such as its 24/7 unmanned, fully digitalized system,” said Ben Hickey, head of Australasia real estate for BlackRock. “StoreLocal’s success to date is a testament to the platform’s competitive advantages within Australia’s self-storage sector, where low operating costs, consistent cash flows and stable tenant demand continue to make the sector attractive.”
Founded in 2015, StoreLocal manages more than 45 facilities across Australia.
Founded in 1988, New York City-based BlackRock provides investment management, advisory and risk-management solutions to institutional and retail clients worldwide. The firm has 70 offices in 30 countries.
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Headquartered in New York, Blackstone is an alternative asset manager with more than $1.2 trillion in assets under management. Its global investment strategies focus on credit, growth equity, hedge funds, infrastructure, life sciences, private equity, real assets, real estate and secondaries.
Sources:The Australian Financial Review, BlackRock Backs $150m Perth Deal in Booming Self-Storage SectorCapital Brief, BlackRock’s StoreLocal Buys KeepSafe Storage Portfolio for $150MIPE Real Assets, Blackstone Grows Australian Self-Storage Platform With KeepSafe AcquisitionMingtiandi, Blackstone Sells Perth Self-Storage Assets to BlackRock’s StoreLocal for Over $101M
ISS Staff
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