Capitaland Investment Bets Self Storage Growth 100 Mil Flagship Kaki Bukit Tokyo Expansion
for S$120 mil
CapitaLand Investment Ltd (CLI), a global asset management company based in Singapore, recently announced that its self-storage platform, Extra Space Asia (ESA), is set to invest about $100 million in a flagship development and acquisitions in Tokyo. The investment will be used to develop a build-to-suit flagship facility in Singapore and acquire properties in the city.
On September 18, ESA was granted an industrial site at Kaki Bukit Avenue 5 by Jurong Town Corporation (JTC). The company submitted the sole bid of $31.39 million for the 74,309 square foot site which comes with a 33-year lease. This marks the first industrial government land sale by JTC designated for self-storage use. ESA plans to develop a 185,000 square foot facility on the site, which would be Singapore’s first self-storage project to achieve the Green Mark Super Low Energy Building certification.
Upon completion, ESA’s portfolio in Singapore will expand to 13 properties across the island, with a total gross floor area (GFA) exceeding 1.5 million square feet. According to Tim Alpe, the managing director and head of ESA, securing the Kaki Bukit site for its flagship self-storage facility in Singapore is a significant achievement that showcases the company’s development capabilities.
In addition to developing its flagship facility in Singapore, ESA has also acquired three operating self-storage facilities in Tokyo’s 23 Wards, the city’s core urban area. This brings the company’s portfolio in Japan to 17 facilities spanning more than 60,000 square feet 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. In October 2022, CLI partnered with Netherlands-based pension fund asset manager APG Asset Management to acquire ESA for an initial equity investment of $570 million, with the 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, totaling 3 million square feet across Asia. This expansion solidifies ESA’s position as one of the region’s leading self-storage operators, according to Goh.
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According to Alpe, ESA’s portfolio maintains a high average occupancy of over 90%. The company plans to further expand its portfolio to $2 billion by 2028, taking advantage of the increasing urbanization, e-commerce growth, 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.