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Capital raising builds storage giant’s industrial property portfolio
The nation’s second-largest self-storage provider is set to expand its facility stronghold with the acquisition of the Southern Cross portfolio.
Melissa Coade
Firms: Baker & McKenzie (J.P. Morgan Australia Ltd; Morgan Stanley Australia Securities Ltd); King & Wood Mallesons (National Storage REIT)
Value: $260 million AUD
Area: M&A
Key players: Baker & McKenzie partner Lauren Magraith (pictured) led the legal team advising J.P. Morgan and Morgan Stanley Australia Securities. Senior associate Hoda Nahlous and associate Ivo Basoski assisted in the deal.
Deal significance:
J.P. Morgan and Morgan Stanley Australia Securities have fully underwritten a $260 million institutional placement and non-renounceable entitlement offer for self-storage facility provider NSR.
The companies were joint lead managers and underwriters in the capital raising to back NSR’s $285 million acquisition of the Southern Cross portfolio, comprising 13,000 storage-letting assets nationwide. NSR already holds a 10 per cent interest in Southern Cross.
National Storage REIT is one of Australia’s largest self-storage providers, offering residential and commercial storage solutions for customers across 100 storage centres throughout Australia and New Zealand.
Once NSR acquires the Southern Cross portfolio it will own 56,000 storage units across Australia.
Commenting on the capital raising, Baker & McKenzie partner Lauren Magraith said:
“The proceeds of the capital raising will be used by National Storage REIT to fund the acquisition of the Southern Cross portfolio of assets from Heitman.”
“Our team was delighted to act for our longstanding clients J.P. Morgan and Morgan Stanley on this transaction, having also advised on National Storage REIT’s initial public offering in 2013 and each of its subsequent capital raisings since IPO,” Ms Magraith added.
