SENNA

Brookfield and GIC Lodge AUD4.02bn Bid for National Storage

Brookfield Asset Management and Singapore's sovereign wealth fund GIC have made a AUD4.02 billion ($2.7 billion) bid to acquire National Storage REIT, one of Australia's largest self-storage providers.

The proposed deal, which would take National Storage private, highlights the continued appeal of the self-storage sector for global institutional investors seeking stable, defensive assets. National Storage's portfolio of over 200 facilities across Australia and New Zealand has attracted significant interest, with the company receiving a string of takeover approaches in recent years.

According to the statement, the AUD2.40 per share offer represents a 21% premium to National Storage's closing price on Monday. The board of National Storage has unanimously recommended the deal to shareholders, subject to an independent expert's report and no superior proposal emerging.

"This transaction represents an attractive outcome for National Storage securityholders, providing certain value at a significant premium," said National Storage Chairman Howard Brenchley.

Brookfield and GIC are no strangers to the Australian real estate market. In 2019, the two firms teamed up to acquire a majority stake in Healthscope, one of the country's largest private hospital operators, in a AUD4.5 billion deal.

The self-storage sector has proven resilient during the pandemic, with many operators seeing increased demand as households and businesses sought additional storage space. This has made the asset class appealing to long-term investors like Brookfield and GIC, who are betting on continued growth.

"The self-storage sector has attractive defensive characteristics and favourable industry dynamics, which make it a compelling investment opportunity," said a Brookfield spokesperson.

The deal is subject to shareholder and regulatory approvals and is expected to close in the first half of 2023. If successful, it would represent one of the largest privatizations of an Australian real estate investment trust in recent years.