Extra Space and CapitaLand making moves in Singapore
Extra Space is on the move. Full story here:
Self storage related excerpts here:
Singapore, 7 February 2024 – CapitaLand Investment Limited (CLI) today announced three new acquisitions in Southeast Asia from unrelated third parties. The acquisitions include two industrial properties in Singapore by Extra Space Asia, the Asia-focused self-storage platform managed by CLI.
Ms Patricia Goh, CEO, Southeast Asia Investment, CapitaLand Investment, said: “Despite the challenging market conditions, we have made tremendous progress in deploying capital strategically across Southeast Asia over the past year into assets catering to self-storage, logistics and wellness-hospitality sectors. These sectors have demonstrated strong secular growth in this region and align with our thematic focus of investing in real estate driven by long term mega trends such as rapid urbanisation, supply chain rationalisation, evolving consumer preferences, aging population and longevity economy. The acquisitions not only demonstrate our deal sourcing and execution capabilities but also underscore our extensive reach and scale in Singapore as we leverage these competencies to expand our presence in the region.”
Growing Extra Space Asia’s (ESA) platform in Singapore with quality solutions
ESA, one of the largest self-storage operators in Asia with 801 facilities, is expanding its portfolio in Singapore with approximately 320,000 square feet (sq ft) in gross floor area by the end of 1Q 2024. The proposed expansion includes a freehold industrial asset, and an industrial asset with a long land lease tenure located near Holland Village, a popular residential area surrounded by numerous educational institutions and attractive retail and dining offerings. These properties are strategically located near densely populated residential areas and are well-connected to major transport routes. Upon completion of the acquisitions, ESA plans to convert both assets into self-storage facilities in phases, offering air-conditioned units and facilities for wine storage.
With these acquisitions, ESA’s Singapore portfolio will expand its range of locations and storage solutions. ESA’s properties in Singapore continue to record high occupancies as demand for self-storage remains robust. Plans are also underway to add more green-certified properties to its portfolio. In line with the platform’s value-add strategy, CLI will focus on identifying investment opportunities that can unlock value and maximise revenue from the assets through efficient conversions of industrial spaces for self-storage use.