CapitaLand Investment-managed (CLI) self-storage platform Extra Space Asia (ESA) is investing nearly $100 million in its first build-to-suit flagship development in Singapore and acquiring three freehold self-storage facilities in Tokyo, Japan.
According to CLI, ESA has acquired a land parcel at Kaki Bukit Avenue 5 to develop a 185,000 sq ft facility — Singapore’s first self-storage facility set to achieve Green Mark Super Low Energy Building certification from the Building and Construction Authority (BCA).
This marks the first industrial government land sale awarded by the Jurong Town Corporation (JTC) for self-storage use.
Upon completion, ESA’s Singapore portfolio will grow to 13 properties islandwide with over 1.5 million sq ft of gross floor area (GFA).
Slated for completion by 2028, the flagship facility will strengthen ESA’s presence in Singapore’s eastern cluster, says CLI in an Oct 16 announcement, in anticipation of population growth in Tampines West and the development of a new town following the relocation of Paya Lebar Airbase from 2030.
The facility will feature ambient and wine storage options and will serve as a test bed for ESA to incorporate the latest Internet of Things (IoT) capabilities into its operations. It will also be equipped with a virtual analytics security system to enhance operational efficiency.
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This latest acquisition follows ESA’s purchase of two industrial assets located at Tai Seng and Commonwealth for approximately $100 million in February 2024. Both properties have since been converted into self-storage facilities.
With the acquisition of the three high-quality self-storage facilities in Tokyo’s 23 wards, ESA has expanded its presence there to a total of 13 assets.
According to CLI, ESA will continue to acquire high-quality self-storage assets located near densely populated residential areas in Japan’s gateway cities under the “Syuno-Pit+” and “privatebox by Extra Space” brands, with a focus on Tokyo’s 23 wards and the Osaka Metropolitan Region.
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Tim Alpe, managing director and head of Extra Space Asia, says his team aims to grow ESA’s portfolio to $2 billion by 2028, “capitalising on the strong demand driven by rising urbanisation, accelerating e-commerce consumption and increasing space constraints in densely populated cities”.
The Edge Singapore understands the $2 billion target is more than double the current portfolio size.
“ESA is now one of Asia’s largest self-storage businesses with a growing presence in Singapore, Japan, South Korea, Taiwan, Malaysia, Hong Kong and Australia. As a leading operator across our key markets, ESA’s portfolio maintains a high average occupancy of over 90%. Securing the Kaki Bukit site to build our flagship self-storage facility in Singapore is a major milestone that will showcase our development capabilities,” adds Alpe.
Patricia Goh, CEO of Southeast Asia investment and head of logistics and self-storage at CLI, says self-storage is a key investment theme in CLI’s private funds strategy, with ESA central to its Asia-focused growth.
“Since partnering with APG Asset Management in 2022 to acquire ESA, we have deployed more than $500 million in equity to grow ESA’s portfolio from 70 to more than 100 facilities, totalling 3 million sq ft, solidifying its position as one of Asia’s foremost self-storage operators,” adds Goh, who is also director of Storage Ventures Asia. “CLI will continue to leverage our fund management capabilities, deal sourcing expertise, and global network to scale ESA and capture structural growth across key Asia-Pacific markets.”
Founded in 2007, ESA was acquired in 2022 by a joint venture between CLI and APG Asset Management, the investment manager for the largest pension provider in the Netherlands.
