CapitaLand sells self-storage business StorHub for $179.5m

The StorHub self-storage facility at Hougang, part of StorHub's portfolio of 11 such facilities in Singapore and one in Shanghai.
The StorHub self-storage facility at Hougang, part of StorHub's portfolio of 11 such facilities in Singapore and one in Shanghai.PHOTO: CAPITALAND

SINGAPORE - Capitaland has sold a group of companies that own and manage its self-storage business, StorHub, for an aggregate $179.5 million to an unrelated and undisclosed buyer.

Of the total aggregate, $167.5 million is in outstanding shareholder loans owed by the group of companies to StorHub Group Pte Ltd and has been assigned to the buyer, who will pay in stages. StorHub Group Pte Ltd will continue to be wholly owned by CapitaLand post-divestment.

The remaining $12 million is the equity component for the shares of the group of companies, which will be paid in stages and is subject to post-completion adjustments.

According to CapitaLand, the transaction is based on an agreed value of $185 million for StorHub's portfolio of 12 self-storage properties - 11 storage facilities in Singapore and one in Shanghai. They have a total lettable area of about 800,000 square feet.

Jason Leow, president and chief executive officer of Singapore and International, CapitaLand Group, said the "divestment of StorHub is in line with CapitaLand's disciplined approach towards capital recycling".

"Our portfolio optimisation allows us to prioritise our capital allocation to our core markets and sectors. In 2018, CapitaLand divested $4 billion worth of assets and deployed $6.11 billion into new investments. We will stay disciplined in recycling our assets for reinvestment and capital redeployment, with an annual divestment target of at least $3 billion."

CapitaLand shares were down 3.3 per cent, or 12 cents, to $3.52 as at 9.45am.