Capitaland Investment Bets Self Storage Growth 100 Mil Flagship Kaki Bukit Tokyo Expansion
for $212 mil
Singapore-based global asset manager, CapitaLand Investment Ltd (CLI), has recently announced its latest developments in self-storage. CLI’s self-storage platform, Extra Space Asia (ESA), is set to invest around $100 million in its first flagship development in Singapore, as well as new acquisitions in Tokyo.
ESA was awarded a prime industrial site at Kaki Bukit Avenue 5 by the Jurong Town Corporation (JTC) in September 2018, after submitting the sole bid of $31.39 million. This 74,309 sq ft site, with a 33-year lease, marks the first industrial government land sale by JTC designated for self-storage use.
The company plans to develop a state-of-the-art 185,000 sq ft facility at this site, which will be Singapore’s first self-storage project to achieve the Green Mark Super Low Energy Building certification.
Upon completion, ESA’s Singapore portfolio will expand to a total of 13 properties across the island, covering a massive gross floor area (GFA) of over 1.5 million sq ft.
Managing Director and Head of ESA, Tim Alpe, says that securing the Kaki Bukit site for their flagship self-storage facility is a major milestone that showcases their development capabilities. In addition to this, the company has also acquired three operating self-storage facilities in Tokyo’s 23 Wards, the city’s core urban area. This brings ESA’s Japan portfolio to a total of 17 facilities, spanning over 60,000 sq ft of GFA.
CEO of Southeast Asia Investment and Head of Logistics & Self-Storage at CLI, Patricia Goh, says that self-storage is a key investment theme in CLI’s private funds strategy, with ESA being central to their Asia-focused growth.
The development of Pasir Ris is paving the way for a car-lite community, with its focus on more than just roads and public transportation. It has also taken into consideration the importance of cycling paths, especially along Pasir Ris Drive 3, in promoting and supporting alternative modes of travel. These paths not only conveniently lead to Pasir Ris MRT Station, but also to popular destinations like Pasir Ris Park and neighboring areas. These cycling paths serve as green corridors, providing a sustainable means of reaching the beach, nearby estates, and even running errands such as grocery shopping or visiting local cafes. From school commutes to quick trips around the area, Pasir Ris residents can easily incorporate cycling into their daily routines. This, coupled with the recent addition of Jalan Loyang Besar EC, truly showcases Pasir Ris’ commitment to a sustainable and active lifestyle. With Jalan Loyang Besar EC now in the picture, Pasir Ris is well on its way to becoming a model car-lite community.
CLI had previously partnered with Netherlands-based pension fund asset manager, APG Asset Management, in October 2022 to acquire ESA for an initial equity investment of $570 million, with an option to increase the investment to $1.14 billion. Since then, they have deployed more than $500 million in equity to grow ESA’s portfolio from 70 to over 100 facilities, covering a total of 3 million sq ft across Asia. This expansion has solidified ESA’s position as one of the leading self-storage operators in the region, according to Goh.
Alpe adds that ESA’s portfolio maintains a high average occupancy of over 90%. The company aims to expand its portfolio to $2 billion by 2028, taking advantage of the growing trend of urbanisation, e-commerce growth, and space constraints in densely populated cities.
“ESA is now one of the biggest self-storage businesses in Asia, with a growing presence in Singapore, Japan, South Korea, Taiwan, Malaysia, Hong Kong, and Australia,” says Alpe.