Creation of the leading self-storage platform in Hong Kong
This transaction involves a value-add strategy to purchase industrial properties in Hong Kong and convert them into modern self-storage facilities.
RedBox has acquired 3 assets and is operating from 2 further leased sites. The business plan for RedBox seeks to create a self-storage market leader in Hong Kong with a dominant presence in 6-7 key districts.
increase in NOI from conversion to self-storage
square feet GFA in existing portfolio
Self-storage is a recognised institutional investment sector in western economies, characterised by high income margins, strong customer loyalty and low ongoing capital needs.
The key Asian markets are highly fragmented, undersupplied and dominated by local investors operating from leased properties. The Hong Kong market offers downside protection from land values and latent alternative-use potential over the longer term.
Creating spaces to inspire people's lives
Self-storage in Hong Kong has significant growth potential as Hong Kong has the highest residential prices in the world with the average resident living in just 160 sf. High average income levels and small residential unit sizes create a fundamental demand for self-storage.
RedBox's custom built facilities are highly secure, integrated into their community and are environmentally friendly with a focus on energy efficiency. High standards of customer service are provided by an experienced team and ongoing investment in training and technology.
"By changing use from industrial to self-storage we can increase NOI in excess of 2x. Our plan seeks to add value through not only the real estate but by growing RedBox into the leading self-storage operating platform in Hong Kong." Kasey Wong
Investment director, InfraRed NF Investment Advisers