National Storage REIT (NSR) intends on expanding its Perth, Western Australia property portfolio.
The portfolio will be expanded following the purchase of a self-storage facility at Wangara featuring 579 units across 5,300 square metres of net lettable area. The purchase price for Wangara is $10.9 million at a projected year one passing income yield of 9% (excluding transaction costs).
There will also be a development site at Kardinya, 7 kilometres east of Fremantle, covering 5,700 square metres with planned construction for 417 units over approximately 4,400 square metres of net lettable area.
Kardinya will be purchased for $8 million and is forecast to generate a passing income yield of over 10% once occupancy stabilises.
The group also announced a development expansion of an existing NSR operated leasehold site at Cockburn.
The development cost for Cockburn will be borne by the vendor with additional rent to be incurred by NSR, as its existing lease is expanded to cover the new building.
National Storage is one of the largest self-storage providers in Australia, with 65 centres providing tailored storage solutions to over 23,000 residential and commercial customers.
NSR is the first independent, internally managed and fully integrated owner and operator of self-storage centres to be listed on the Australian Securities Exchange (ASX).
In April, NSR bought a Townsville self-storage facility for $17 million.