BlackRock, through funds managed by its real estate business, has acquired a majority interest in Australian self-storage platform StoreLocal.

Founded in 2010, StoreLocal is Australasia’s fourth-largest self-storage operator, owning and managing more than 40 self-storage assets in Australia.

The company implemented pioneering technology in 2019 and has since become a leading market player operating a 24/7 unmanned store model. Together with proprietary data analytics and a deeply localized marketing strategy, StoreLocal has distinguished itself by delivering strong operating margins and an award-winning built product.

Now with over A$1 billion ( US$645 million ) of secured capital, the group’s objective is to further drive the company’s growth through acquisitions and developments as well as expansion of the third-party management platform and brand, to create an over A$2 billion self-storage platform in Australia.

StoreLocal co-founder and chief executive officer Hans Pearson says: “Over the past 15 years, we have patiently established a nationwide platform of institutional quality, which offers outstanding risk-adjusted returns through a highly diversified tenant base, low capex, and high operating margins.

“The BlackRock team is an ideal cultural fit to bring the capital and expertise we now need to achieve our strategic goals. We will continue to expand by focusing on in-store income performance, scaling our technology, acquisitions and development, and growing our third-party management portfolio. Meanwhile, our experienced team will continue to innovate the self-storage sector, focusing on delivering the highest operating margins in our markets.”

Hamish MacDonald, head of APAC real estate at BlackRock, adds: “Our investment focus prioritizes the most liquid and transparent real estate markets across Asia-Pacific, namely Australia, Japan, Singapore, and New Zealand. Many of our targeted sub-sectors have performed very well over a long period of time in markets like the US, and now they can benefit from the ‘APAC lag’ as they are earlier in their structural journey in this part of the world.

“Self-storage in Australia is one with such strong market dynamics, and StoreLocal is the market-leading partner we have been seeking. We are confident that StoreLocal will continue its impressive growth trajectory.”

Pearson and chief operating officer Mark Greig will continue to lead the business following the acquisition.

StoreLocal was advised by Highbury Partnership while BlackRock was advised by Morgan Stanley.