GAW Capital make play at National Storage REIT

23 January 2020

GAW Capital have made a conditional non-binding proposal to acquire 100% of the National Storage REIT.


Details of the offer have not been made public however units in the trust surged 6.3% on news of the proposal to $2.19.


Whilst NSR have confirmed the approach they have advised that "discussions are at this stage preliminary and subject to a number of conditions and there is no certainty that the discussions will lead to a final recommended offer."


Hong Kong-based Gaw Capital Partners is a private equity real estate investor with $US23bn of assets under management.


The National Storage REIT has 168 storage facilities across Australia and New Zealand worth approx $1.9bn. The REIT added 35 Centres to its portfolio in FY2019 and had 8 in the pipeline for Q1FY20. IT is also accelerating the development of 13 additional centres. The Centres held an average occupancy of approx 81% in FY19 and generated a total return for investors of 15%.


Competitor Abacus has significantly ramped up its presence as an operator last year when it acquired a 25 per cent stake in Storage King. Abacus direct portfolio was valued at $908 million as at June 30. Abacus acquired a 4.6% interest in NSR and may be cashed up following the failed takeover of Australian Unity.