(Nov 26): Brookfield Asset Management Ltd and Singapore’s GIC Pte Ltd are jointly exploring a potential takeover of Sydney-listed National Storage REIT, according to people familiar with the matter.
New York-based Brookfield and GIC have been in talks with banks for financing as they contemplate an offer for National Storage, said the people, who asked not to be identified as the information is private. Shares of National Storage have fallen about 10% in the past year, giving the trust a market value of roughly A$3.2 billion (US$2.0 billion or $2.7 billion).
Deliberations are ongoing and Brookfield and GIC could still opt to not proceed with an offer, the people said. A spokesperson for National Storage was unavailable to speak on the phone, and didn’t reply to an email seeking comment. A representative of Brookfield declined to comment, while GIC couldn’t immediately comment.
Any deal would help rejuvenate dealmaking in Australia, where activity has stumbled with the collapse of potential blockbuster deals including BHP Group’s now-aborted approach for US$43 billion rival Anglo American plc. The volume of mergers and acquisitions involving Australian companies as either targets or sellers has fallen to around US$70 billion this year, a 30% decline from the same period in 2024, according to data compiled by Bloomberg.
The Australian Financial Review earlier reported details of the possible bid for National Storage.
GIC, one of the world’s largest sovereign wealth funds, doesn’t publicise its assets under management, but Global SWF estimates the firm manages assets worth US$936 billion. In July, GIC said that real estate valuations were potentially bottoming, presenting attractive investment opportunities.
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Ankur Gupta, Brookfield Asset’s Asia-Pacific real estate head, said in May that more industrial deals could be in store, though the firm hasn’t set a target. Brookfield manages about US$40 billion in real estate in Asia-Pacific and the Middle East. In the same month, Brookfield agreed to buy a $535 million portfolio from a REIT backed by Singapore state investor Temasek Holdings Pte Ltd.
National Storage operates more than 274 storage centres across Australia and New Zealand. It’s the largest self-storage provider in Australia. Its net income for the latest financial year was about A$236 million, a 2.5% increase from the previous year.
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