CLI’s self-storage unit invests close to S$100 million in Singapore flagship project, 3 Tokyo facilities
When completed, the local facility will expand ESA’s portfolio in the Republic to 13 properties with more than 1.5 million sq ft of gross floor area
[SINGAPORE] Extra Space Asia (ESA), the self-storage platform managed by real asset manager CapitaLand Investment (CLI), is investing close to S$100 million into its flagship Singapore development and the acquisition of three facilities in Tokyo.
The Singapore facility will expand ESA’s portfolio in the city to 13 properties with more than 1.5 million square feet (sq ft) of gross floor area (GFA) upon its expected completion by 2028, CLI said on Thursday (Oct 16).
Patricia Goh, CLI’s chief executive officer for South-east Asia investment, said: “Self-storage is a key investment theme in CLI’s private funds strategy, with ESA central to our Asia-focused growth... CLI will continue to leverage our fund management capabilities, deal sourcing expertise and global network to scale ESA and capture structural growth across key Asia-Pacific markets.”
Tim Alpe, ESA managing director and head, indicated plans to expand the self-storage platform’s portfolio to S$2 billion by 2028 amid “strong demand”. This is driven by rising urbanisation, accelerating e-commerce consumption, and increasing space constraints in densely populated cities, he noted.
“Securing the Kaki Bukit site to build our flagship self-storage facility in Singapore is a major milestone that will showcase our development capabilities. With favourable market dynamics supporting the industry’s expansion, we are well-placed to seize opportunities and further strengthen our market leadership,” Alpe added.
The Singapore facility will strengthen ESA’s presence in Singapore’s eastern cluster, CLI said. It will position ESA for the anticipated growth of the population in Tampines West, as well as for the development of a new town following the relocation of the Paya Lebar Air Base from 2030.
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The development will also be Singapore’s first self-storage facility to achieve the Green Mark Super Low Energy Building certification, CLI said. It will also feature ambient and wine storage options, as well as serve as a test bed for ESA to incorporate Internet of Things capabilities into its operations, the group said.
Meanwhile, the acquisition of the three operating self-storage facilities in Japan has expanded ESA’s portfolio in the country to 17 facilities, totalling more than 60,000 sq ft of GFA. The addition of the facilities, which are located in Tokyo’s core urban area, have also brought ESA’s portfolio in the city to 13 assets.
“ESA will continue to acquire high-quality self-storage assets located near densely populated residential areas in Japan’s gateway cities under the Syuno-Pit+ and privatebox by Extra Space brands, with a focus on Tokyo’s 23 wards and the Osaka metropolitan region,” CLI said.
ESA has more than 100 facilities across seven Asian gateway cities of Hong Kong, Kuala Lumpur, Osaka, Seoul, Singapore, Taipei and Tokyo. Founded in 2007, it was acquired in 2022 by a joint venture between CLI and APG Asset Management, the investment manager of a pension provider in the Netherlands.
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