CapitaLand Investment (CLI) announced that its self-storage platform, Extra Space Asia (ESA), has formed a strategic partnership with Ambitious Co, the largest indoor self-storage manager in Japan.
Ambitious’ self-storage business, “Syuno-Pit”, operates 681 self-storage facilities across 126 cities and districts in Japan.
ESA is set to expand its portfolio in Japan to source, develop and manage self-storage facilities in Osaka and Tokyo.
These two regions are the largest markets for self-storage in Japan and where Syuno-Pit has the largest presence.
Kickstarting this partnership, ESA has acquired four self-storage facilities in Osaka from Ambitious, with plans to add another two facilities in Tokyo by early 2025.
ESA has a right of first refusal to acquire future assets to be developed by Ambitious.
See also: CDL divests assets worth more than $600 million in 2024
ESA's existing partner in Japan is Keiyo Logistics Co. ESA now benefits from the expertise of two established self-storage managers, the CLI press release says.
ESA is targeting investments to triple its self-storage portfolio in the country to over JPY12 billion ($107 million) in the near term.
“Since the formation of CLI’s self-storage joint venture with APG Asset Management in 2022 to acquire ESA, we have grown funds under management (FUM) of our self-storage portfolio by approximately 25%, including the acquisition of two prime industrial assets in Singapore for approximately $100 million in 1Q2024," says Patricia Goh, CEO, Southeast Asia Investment, CLI and director, Storage Ventures Asia.
"Leveraging CLI’s strong global network of customers and our strategic partners’ deep local expertise, we will continue to scale ESA’s portfolio, and advance towards becoming a dominant self-storage player in Japan," she adds.
