{"id":358744,"date":"2023-09-11T07:50:42","date_gmt":"2023-09-10T23:50:42","guid":{"rendered":"https:\/\/www.mingtiandi.com\/?p=358744"},"modified":"2023-09-11T17:25:41","modified_gmt":"2023-09-11T09:25:41","slug":"storhub-buys-japans-storage-plus-self-storage-operator","status":"publish","type":"post","link":"https:\/\/www.mingtiandi.com\/real-estate\/logistics\/storhub-buys-japans-storage-plus-self-storage-operator\/","title":{"rendered":"Warburg Pincus’ Storhub Acquires Japanese Self-Storage Firm in Second Buyout in One Month"},"content":{"rendered":"
\"Storage

A Storage Plus location in Japan<\/p><\/div>\n

Warburg Pincus has expanded its Asia footprint in one of real estate\u2019s hottest asset classes as the private equity firm\u2019s Storhub self-storage takes over a Japanese rival.<\/p>\n

Singapore-based Storhub has now completed its acquisition of Storage Plus Corp, which has 35 locations across Japan, in a move which will add around 100,000 square feet (9,290 square metres) to the company\u2019s six-country portfolio, and make it one of the largest self-storage operators in Asia\u2019s second-largest economy, according to a statement.<\/p>\n

\"Altus<\/a><\/div><\/p>\n

“We are pleased to welcome the Storage PLUS team to the StorHub Group,\u201d Storhub CEO Mike Hagbeck said in a statement. \u201cStorage PLUS is an industry leader in Japan with a long track record of outperformance. This strategic move is set to accelerate our platform growth in Japan.\u201d<\/p>\n

The purchase from Japanese developer Ichigo\u2019s Centro unit was agreed to last month<\/a> and is being revealed just over two weeks after Storhub acquired a majority stake in Malaysian self-storage operator Flexi Storage<\/a>.<\/p>\n

National Portfolio<\/h3>\n

Storhub is acquiring 100 percent of the equity in Storage Plus from Ichigo with the deal boosting the Singapore-based firm\u2019s Japan offering to around 390 owned, leased or managed locations, following the transaction.<\/p>\n

\"Dan

Dan Morisaku of Ichigo<\/p><\/div>\n

Founded in 2006, Storage Plus was named Japan\u2019s top multi-site self-storage operator for 2023 by industry group Self-Storage Association Asia, with the buyout ranking as one of the largest self-storage acquisitions ever in Japan, according to Storhub.<\/p>\n

\u201cStorHub is a leading self-storage platform in Asia, with strong backing from Warburg Pincus and a deeply experienced management team,\u201d Dan Morisaku, head of business promotion for Ichigo said in the statement. \u201cFollowing a strategic review process, we believe StorHub is the ideal partner to lead the next phase of growth of Storage Plus and deliver greater value to our customers.\u201d In the wake of its strategic review Ichigo had engaged JLL to explore the sale of the business, with the property consulting firm having advised it on the disposal.<\/p>\n

\"\"<\/a><\/p>\n

The Japanese company has locations in Kanagawa prefecture outside of Tokyo, as well as the cities of Sapporo and Fukuoka in addition to 15 stores in the capital.<\/p>\n

\u201cIn recent years, the Japan market has witnessed robust growth in self-storage demand,\u201d Storhub\u2019s Hagbeck added. \u201cWe are excited about the opportunities to bring our 20 years of experience and expertise in self-storage to a broader range of customers across the market.\u201d<\/p>\n

Growth Spurt<\/h3>\n

Set up in Singapore 20 years ago, Storhub now owns or manages 6.4 million square feet of gross floor area in its 70,000 storage units across Australia, Greater China, Japan, Malaysia, Singapore and South Korea, according to the company.<\/p>\n

\"Storhub\"

A Storhub location in Singapore’s Toa Payoh area (Image: Storhub)<\/p><\/div>\n

Warburg Pincus acquired the business from CapitaLand Group in 2019 for S$179.5 million (now $131.5 million) when the portfolio stood at 11 properties in Singapore and another in Shanghai, and has since been expanding it regionally.<\/p>\n

\u201cWe have continued to see strong underlying demand for self-storage driven by continued urbanization, rising housing prices in Asia\u2019s metropolitan areas and the de-cluttering of apartments due to hybrid work post-pandemic,\u201d said Warburg Pincus managing director Li Fan, who serves as a director on StorHub\u2019s board.<\/p>\n

He added that, \u201cWe believe Asia\u2019s self-storage industry is approaching an inflection point and is poised for accelerated growth in the coming years.\u201d<\/p>\n

Storhub\u2019s Malaysian acquisition, which was announced on 24 August, gave the company a presence in that southeast Asian nation with four locations in Kuala Lumpur and the Klang valley.<\/p>\n

That deal was announced just over a half-year after Storhub bought Mandarin Self-Storage in Singapore<\/a> from US fund manager Heitman for an estimated S$230 million. The company has also been growing organically, opening its sixth location in Hong Kong during October of last year after making its Korea debut in January of 2022.<\/p>\n

Mini-Shed Races<\/h3>\n

Driven by the outsized rents achieved when leasing small industrial spaces to individual consumers, and with Asia\u2019s small home sizes boosting the need for storage space, private equity firms have been scrambling to assemble self-storage portfolios in Asia.<\/p>\n

In addition to Warburg Pincus and Heitman, Blackstone has been rapidly expanding its Asian holdings in the sector, with the New York-based giant\u2019s Storefriendly joint venture opening two new Hong Kong properties in April<\/a> of this year.<\/p>\n

\"Yardi<\/a><\/div><\/p>\n

After selling off Storhub four years ago, CapitaLand leapt back into the sector earlier this year as it teamed with Dutch pension fund manager APG for a S$570 million deal to acquire and expand Extra Space Asia<\/a>, a Singapore-based player which at the time owned, leased or operated 73 facilities spanning over 1 million square feet (93,000 square metres) of space across six Asian nations.<\/p>\n

Also active in the sector is Canada\u2019s Brookfield<\/a>, which last year acquired a pair of Hong Kong assets to expand its RedBox self-storage business in the city.<\/p>\n","protected":false},"excerpt":{"rendered":"

Warburg Pincus has expanded its Asia footprint in one of real estate\u2019s hottest asset classes as the private equity firm\u2019s Storhub self-storage takes over a Japanese rival.<\/p>\n

Singapore-based Storhub has now completed its acquisition of Storage Plus Corp, which has… Read More>><\/a><\/p>\n","protected":false},"author":178,"featured_media":358745,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[5385],"tags":[5382,5359,3013,2716,6898,6331,1504],"ppma_author":[8841],"authors":[{"term_id":8841,"user_id":178,"is_guest":0,"slug":"michael-cole","display_name":"Michael Cole","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/3ade7d9efc9643ef5127fe8275be2eb2?s=96&d=mm&r=g","user_url":"","last_name":"Cole","first_name":"Michael","description":""}],"_links":{"self":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/358744"}],"collection":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/users\/178"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/comments?post=358744"}],"version-history":[{"count":0,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/358744\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media\/358745"}],"wp:attachment":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media?parent=358744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/categories?post=358744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/tags?post=358744"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/ppma_author?post=358744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}