Storage Shed Sell-Off in Perth’s Southern Corridor

A portfolio of three assets in arguably the tightest-held subsector in the nation has come to market in WA.

Property investment firm Kingsmede Partners plans to offload three self-storage facilities in Perth’s southern corridor.

The decision comes amid strong interest from offshore and local investors in the subsector, driven by market metrics and growth prospects at asset level and across the Australian self-storage industry.

According to the Self-Storage Association of Australia, just 15 storage facilities traded in 2023.

It said this historical low was set against unprecedented demand from institutional capital for exposure to the subsector.

The portfolio comprises 740 units over 9726sq m of NLA, 80 per cent of which are drive-up units.

The combined land holding of about 1.92ha provided a rare opportunity of immediate scale in am undersupplied, land-constrained market, according to Ben Younger and Nick Goodridge of Cushman & Wakefield, who are handling the sale.

They said the portfolio of facilities had undergone substantial upgrades to improve security, fire safety, driveways, IT infrastructure and roofing.

The properties are at 10-12 Carlston Road, Rockingham; 135A Dixon Road, East Rockingham; and 6 and 20 Fitzgerald Road, Greenfields, and are “surrounded by a growing population catchment”.

Cushman & Wakefield said the assets had stabilised occupancy rates averaging 85 per cent and generate an annual gross income of about $2.4 million.

▲ The asset at 10-12 Carlston Road, Rockingham.

It said with rates about 20 per cent below market “there is meaningful upside”.

Younger said the surge in demand for self-storage across Australia “reflects a profound shift influenced by consumer culture, the exponential growth of e-commerce, diminishing living spaces and a burgeoning population”.

“Individuals and families are increasingly seeking secure and convenient storage solutions for their personal belongings,” Younger said.

Goodridge said that “strategically embedded opportunities for value creation, stemming from occupancy growth and genuine rate reversion, further enhance this proposition”.

The properties are being sold by Cushman & Wakefield via an offers-invited campaign closing on April 11 and are available in one line or as individual properties.