Abacus Property Group has filed plans for a four-storey self-storage facility in a growth precinct north of Brisbane as it moves to spin off its Storage King assets into a $3-billion listed property trust.
The proposed new facility is earmarked for a 5674sq m vacant site at 62C William Berry Drive at Morayfield—46km north of the Brisbane CBD—in the fifth fastest-growing council area in Australia.
It would comprise a total gross floor area of 9458sq m with self-storage units across all four levels as well as ancillary office, retail and display space on the ground floor and 16 on-site car parking spaces.
The storage units would range in size from about 2.25sq m to 36sq m, and the gated facility would operate 24 hours a day, seven days a week.
“As the economy continues to change and fluctuate, there is growing need for affordable housing,” the planning report lodged with the Moreton Bay Regional Council said.
“Part of providing affordable housing is reducing the land and floor area available to users. With a reduction in storage space in the home, the proposal will provide affordable storage solutions to the local area.”
“This facility will enable users to consider housing choices that may not have been previously available due to lack of space”.
Abacus Property Group initially acquired 25 per cent of Storage King in 2018 and two years later took full control, paying $50 million for the additional 75 per cent stake of the self-storage landlord.
Last week, the ASX-listed fund manager announced its plans to create a separate listed self-storage entity—to be known as Abacus Storage King (ASK) REIT— that would comprise a 127-asset portfolio, including 108 trading facilities with more than 568,000sq m of space and 19 developments.
“Abacus has deployed over $1.2 billion into self-storage assets over the last five years and has determined that the portfolio has reached a scale where it makes most sense to be separately listed with its own capital structure,” Abacus’ managing director Steven Sewell said.
“The self-storage market has attractive market fundamentals supported by macroeconomic tailwinds including an imbalance in supply and demand for self-storage space, densification of residential property, and the growth of e-commerce.”
Sewell said ASK had an outstanding growth runway with a pipeline of future acquisitions as well as 115,300sq m of development and expansion opportunities.
The Morayfield area—where the proposed new self-storage facility is planned—is expected to accommodate and additional 16,000 residents over the next two decades.
