Image via National Storage
Brookfield and Singaporean sovereign wealth fund GIC are gearing up for a major play in the Australasian self-storage sector, preparing a consortium bid for National Storage REIT (NSR), the region’s largest owner and operator of self-storage facilities. According to reporting by the Australian Financial Review, the potential acquisition is moving toward a multi-billion-dollar structure backed by a substantial debt package currently being assembled by lender groups.
NSR last traded at $2.26 per share, placing its market capitalisation above $3 billion. Sources familiar with the financing say the indicative offer price has been set close to the group’s net tangible asset (NTA) value, a notable detail given NSR has recently traded at roughly a 7% discount to NTA. This comes at a time when many listed REITs have rebounded, supported by Australia’s string of interest rate cuts that have helped push several trusts back to premiums relative to their asset backing.
A High-Conviction Bet on Storage Demand
The Brookfield–GIC consortium is being advised by Deutsche Bank and Jefferies, while Citi and JPMorgan are guiding NSR through the process. The involvement of more than a dozen lenders signals the scale and complexity of the anticipated transaction.
Analysts have long flagged NSR as an attractive platform: it benefits from low funding costs, strong demographic tailwinds, and a sector that continues to draw deep institutional interest. In an October note, Macquarie analysts underscored that NSR’s muted trading relative to its fundamentals has persisted despite its stability and proven performance across cycles.
A Business Built Over Decades
Managing Director Andrew Catsoulis has spent decades building National Storage into a dominant regional operator, now home to 274 centres and 1.5 million square metres of net lettable area. For the year ending June 30, the company posted $164 million in underlying earnings, a performance that reinforces the sector’s resilience and recurring revenue profile.
Sector Momentum Continues
The looming bid also follows a wave of strategic activity within the storage sector. Earlier this year, Abacus Storage King attracted a $2.2 billion takeover attempt from Ki Corporation and US-listed Public Storage, though the offer ultimately fell short. The continued interest from global capital underscores the defensive nature of storage assets and the sector’s appeal in a shifting economic environment.
If Brookfield and GIC formalise their offer, the acquisition could reshape the competitive landscape across Australia and New Zealand, further cementing self-storage as a core institutional asset class.
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