SIA points $40m raise start at storage boom

A specialist fund manager is riding the post-pandemic boom in self-storage, tapping investors for $40m to back a new fund for expansion on the east coast.

Roomia facility in Butler, north of Perth. Picture: Supplied by Storage Investments Australia

Specialist fund manager Storage Investments Australia (SIA) is doubling down on the post-pandemic boom in self-storage demand, tapping investors for a new fund focused on expanding its footprint in the eastern states.

Established in 2012, SIA has about $500m in assets under management, with a portfolio of 18 facilities across Victoria, South Australia, NSW, Queensland and Western Australia.

As part of a five-year strategic growth plan, Adelaide-based SIA is planning to boost its network to $1bn in self storage assets, beginning with a $40m capital raise for a new fund that will invest in the development of up to four new facilities in the eastern states.

The fund is targeting an internal rate of return of 17 per cent.

SIA’s expansion comes amid a surge in investor interest in Australia’s self-storage market, which has been dominated by large operators such as ASX-listed players National Storage REIT and Abacus Storage King, and well-established private groups such as Kennards and Fort Knox.

In March Singapore-based self-storage operator StorHub announced that it had secured $460m of fresh equity commitments to expand its Australian network, targeting sites in Sydney, Melbourne and Brisbane.

Storage Investments Australia chairman Con Tragakis, left, with operations and store development director Kevin McGuinness.

SIA is headed up by chairman Con Tragakis, who spent almost three decades at KPMG in Adelaide before stepping down from his role as SA state chairman in 2017.

He said SIA’s focus on “excellence in design, safety and technical innovation”, and its vertically integrated model - overseeing development of new sites right through to management - offered a point of difference to other players in the market.

“We believe our customer service and care is unrivalled in the market and that’s meant our facilities are experiencing high tenancy and low turnover,” he said.

“It’s an approach that has delivered shared value for both our customers and our investors and facilitated our continued expansion, particularly in key growth markets.

“Our team combines deep sector expertise across architecture, engineering, construction and customer insights, and when you overlay that with our vertical integration model, we’re able to control and prioritise the customer experience.

“Ultimately that translates to exceptional returns for our investors - we can maximise value throughout the life cycle and tap into the significant and growing demand for a safe, high-quality storage experience.”

SIA has to date deployed more than $100m in equity in self-storage development and management, including the development of its own in-house store management platform, Roomia Self Storage, which it launched in 2023.

Storage King previously managed several of SIA’s facilities, with those sites being transitioned to the Roomia brand as licensing agreements expire.

The pandemic-era growth of e-commerce and hybrid working patterns has continued to drive demand for self-storage facilities, with the Self Storage Association of Australasia estimating there are now close to 2300 self-storage sites across Australia.

The Association predicts that the number of facilities across Australia and New Zealand will grow by 18 per cent by 2025, after a 13 per cent rise in average storage fees in 2023.