Capitaland Investment Bets Self Storage Growth 100 Mil Flagship Kaki Bukit Tokyo Expansion
CapitaLand Investment Ltd (CLI), a global asset management company based in Singapore, has announced investments of around $100 million in its self-storage platform, Extra Space Asia (ESA). The investment will include the development of a flagship self-storage facility in Singapore, as well as acquisitions in Tokyo.
After submitting the sole bid of $31.39 million, ESA was awarded an industrial site at Kaki Bukit Avenue 5 by Jurong Town Corporation (JTC) on September 18. This 74,309 sq ft site, with a 33-year lease, marks the first industrial government land sale designated for self-storage use by JTC.
ESA plans to develop a 185,000 sq ft facility on the site, which will be Singapore’s first self-storage project to achieve the Green Mark Super Low Energy Building certification.
The concept of decentralisation is a key component of the URA Master Plan, aimed at improving accessibility to jobs and amenities for residents. Within this strategy, Sembawang plays a significant role in the development of regional centres and commercial nodes in the North Region, with a specific focus on the nearby Woodlands Regional Centre. As the largest economic hub in the North area, the Woodlands Regional Centre is poised to offer a diverse range of employment opportunities in sectors such as business services, technology, and logistics. This development is set to bring a wealth of employment options closer to residents of Sembawang EC, reducing the need for lengthy commutes to the Central Business District and promoting a healthier work-life balance. The benefits of this development are not limited to residents, as it is also expected to boost the overall economy of the North Region, making Sembawang EC an even more sought-after location for individuals and families to call home.
Upon completion, ESA’s Singapore portfolio will expand to 13 properties across the island, with a total gross floor area (GFA) exceeding 1.5 million sq ft.
According to Tim Alpe, Managing Director and Head of ESA, securing the Kaki Bukit site for their flagship self-storage facility is “a major milestone that will showcase our development capabilities.”
In addition to the development in Singapore, ESA has also acquired three operating self-storage facilities in Tokyo’s 23 Wards, the city’s core urban area. This brings their Japan portfolio to a total of 17 facilities spanning more than 60,000 sq ft of GFA.
“Self-storage is a key investment theme in CLI’s private funds strategy, with ESA central to our Asia-focused growth,” says Patricia Goh, CEO of Southeast Asia investment and head of logistics & self-storage at CLI.
CLI partnered with Netherlands-based pension fund asset manager APG Asset Management in October 2022 to acquire ESA for an initial equity investment of $570 million, with an option to increase the investment to $1.14 billion. Since then, more than $500 million in equity has been invested to grow ESA’s portfolio from 70 to over 100 facilities, totalling 3 million sq ft across Asia. This expansion has solidified ESA’s position as one of the region’s leading self-storage operators, according to Goh.
According to Alpe, ESA’s portfolio boasts a high average occupancy of over 90%. The company plans to expand its portfolio to $2 billion by 2028, capitalising on the growing trends of urbanisation, e-commerce, and space constraints in densely populated cities.
“ESA is now one of Asia’s largest self-storage businesses, with a growing presence in Singapore, Japan, South Korea, Taiwan (China), Malaysia, Hong Kong SAR and Australia,” says Alpe.