ASX-listed National Storage makes NZ foray

ASX-listed National Storage makes NZ foray with $23 mln buy-up in Christchurch

By Paul McBeth

June 26 (BusinessDesk) - National Storage REIT, one of the largest self-storage providers in Australia, has made its first foray across the Tasman spending $23 million building a storage portfolio in Christchurch.

The Brisbane-based company will buy five sites in Christchurch, funded from existing facilities, it said in a statement to the ASX. The units in Redwood, Belfast, Opawa, Ferrymead and Hornby are expected to add to earnings per share in the first year with potential upside on a per square metre rate and development potential. The conditional deal is expected to settle in August.

"The New Zealand market remains highly fragmented with no dominant major owner," managing director Andrew Catsoulis said. "We have been reviewing the fundamentals of the New Zealand market for some time and they are highly attractive and fit squarely within NSR's acquisition metrics."

In April, the ASX-listed company raised $57.5 million to cut debt and fund acquisition opportunities. The Christchurch portfolio is the first purchase since the capital raising.

Catsoulis said the company will continue to pursue opportunities in New Zealand in line with its acquisition metrics.

National Storage shares fell 3 percent to A$1.615, and have gained 15 percent this year.

(BusinessDesk)

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