SENNA

Brookfield and GIC Launch $4 Billion Bid for National Storage REIT

In a blockbuster deal that shakes up Australia's property sector, Brookfield Asset Management and Singaporean sovereign wealth fund GIC have made a $4 billion takeover offer for National Storage REIT, the country's largest self-storage operator.

The proposed acquisition, if successful, would represent the largest take-private transaction of a real estate investment trust in Australia, with an estimated total enterprise value of $6.8 billion including equity, debt and committed development spending.

The move by the heavyweight investment firms underscores the growing appeal of the self-storage asset class, which has proven resilient even during the pandemic. National Storage, with over 200 facilities across Australia and New Zealand, has seen its share price surge by nearly 50% over the past year, outpacing the broader A-REIT index.

"Self-storage has emerged as a sought-after property sector, offering stable cash flows and attractive returns," said a Sydney-based analyst who declined to be named. "Brookfield and GIC likely see significant upside potential in taking National Storage private and scaling up the platform."

The all-cash offer of $2.40 per National Storage security represents a 21% premium to the REIT's last closing price. The bidders have also committed to funding National Storage's existing development pipeline, which includes over $1 billion in committed projects.

"This proposal represents an attractive outcome for National Storage security holders," said Andrew Catsoulis, the REIT's Managing Director. "The board will carefully consider the proposal and will update the market in due course."

The move comes amid a wave of private capital targeting Australian real estate, attracted by the market's stability and opportunities for value creation. Earlier this year, Blackstone acquired a majority stake in the country's largest private hospital operator Healthscope in a $5.7 billion deal.

Analysts say the National Storage transaction, if completed, could spur further consolidation in the fragmented self-storage sector as larger players seek to build scale. Leading REITs like Public Storage and Extra Space Storage have also been active acquirers globally as they look to expand their footprints.

For Brookfield and GIC, the deal represents a chance to gain a foothold in Australia's resilient property market and capitalize on the growing demand for self-storage services from both businesses and consumers. The transaction is subject to regulatory approvals and due diligence, with a target completion by mid-2023.