Intermediate Capital Group does the heavy lifting at self-storage REIT
Just weeks after Abacus Property ruled off its $3 billion demerger of Storage King, we’ve unearthed another deal in the red-hot self-storage sector.
Street Talk understands London-listed alternative asset manager, Intermediate Capital Group, has held discussions to take a stake in privately owned Storage Investments Australia, which has 13 self-storage facilities, including a handful under construction.
Sources said ICG, which has a £4 billion ($7.7 billion) market capitalisation, was in talks to tip $300 million into the business to fund SIA’s pipeline, and had submitted terms to sell-side adviser MA Financial. However, negotiations were put on hold earlier this month and there was no certainty a deal would get done, the sources said.
Con Tragakis, chair of Storage Investments Australia, is seeking a cashed-up capital partner. AFR
Established in 2012, SIA has about $350 million in assets under management and claims to deliver double-digit returns to its investors. Its portfolio includes assets in Victoria, South Australia, NSW and Western Australia. Deal proceeds were expected to go towards expanding SIA’s national footprint, sources said.
It’s believed other parties have been in the data room for the vertically integrated manager in recent months. MA Financial’s local head of real estate, Ben Boyd, is expected to seek to rustle up a competing offer, sources said.
SIA was founded almost 10 years ago by chairman Con Tragakis, who spent almost three decades at KPMG in Adelaide where he specialised in property tax advice to developers and high-net-worth private groups. According to accounts filed with the corporate regulator, SIA’s ownership is split between Melanie Tragakis, John O’Sullivan, Matthew MacMahon, Kevin
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