Image via National Storage
Brookfield and Singapore’s sovereign wealth fund GIC have jointly launched a substantial $4 billion all-cash bid to acquire National Storage REIT (NSR), Australia’s largest self-storage provider. According to the Australian Financial Review, the proposal marks the biggest buyout attempt in the property sector this year and could become the country’s largest real estate take-private transaction once equity, debt, and committed development spending push the total enterprise value to an estimated $6.8 billion.
A Premium Offer Reflecting Growth Expectations
The consortium is offering $2.86 per security, a price that represents:
- More than 26% premium to NSR’s last traded price of $2.26 before entering a trading halt; and
- An 11% premium to the company’s net tangible asset (NTA) valuation of $2.58 per share.
Despite NSR trading at around a 12% discount to the value of its underlying assets, the proposed pricing underscores Brookfield and GIC’s conviction in the sector’s long-term fundamentals. Australia’s persistent housing pressures and population growth continue to fuel robust demand for self-storage solutions, factors that have lifted institutional interest across the segment.
Strategic Fit for Brookfield’s Alternatives Portfolio
Brookfield, dual-listed in New York and Canada, has been steadily expanding its exposure to alternative real estate globally. Its focus areas include self-storage, student accommodation and industrial assets, sectors that have shown resilience through market cycles. The push into Australia’s self-storage market aligns with its broader strategy of targeting stable, income-generating alternative asset classes.
National Storage Grants Exclusive Due Diligence
National Storage, founded and led by Andrew Catsoulis, confirmed receipt of the non-binding proposal and acknowledged that it had previously engaged in confidential discussions following earlier unsolicited approaches. The board has now granted the consortium exclusive due diligence access until December 7 to allow for the submission of a binding proposal.
Brookfield and GIC are advised by Deutsche Bank and Jefferies, while NSR has engaged Citi and JPMorgan as its advisers. The consortium is reportedly working to assemble a significant debt package with support from a dozen domestic and international lenders.
Institutional Interest in Self-Storage Continues to Intensify
The bid comes amid heightened interest in the sector. Earlier this year, Abacus Storage King received, but ultimately rejected, an enhanced $2.2 billion takeover offer from a partnership between South African billionaire Nathan Kirsh and US-listed Public Storage. While unsuccessful, the approach demonstrated a widening recognition of the asset class’s defensive characteristics and stable returns.
National Storage itself was at the centre of a competitive three-way bidding contest five years ago, with Warburg Pincus, Public Storage and Gaw Capital all expressing interest before global uncertainty halted discussions.
What Comes Next?
With due diligence now underway, investors will closely watch whether Brookfield and GIC formalize a binding offer by the December deadline. If completed, the acquisition would reshape Australia’s self-storage landscape and mark one of the year’s defining transactions in commercial real estate.
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