StoreLocal, Australasia’s fourth-largest operator, owns and manages more than 40 self-storage assets across Australia.
Commenting on the deal, BlackRock’s head of Asia-Pacific (APAC) real estate, Hamish MacDonald, said that BlackRock continues to seek opportunities within liquid and transparent real estate markets across the APAC, including Australia, Japan, Singapore and New Zealand.
“Many of our targeted subsectors have performed very well over a long period of time in markets like the US, and now they can benefit from the ‘APAC lag’ as they are earlier in their structural journey in this part of the world,” MacDonald said.
“Self-storage in Australia is one with such strong market dynamics, and StoreLocal is the market-leading partner we have been seeking. We are confident that StoreLocal will continue its impressive growth trajectory.”
Ben Hickey, head of Australia real estate at BlackRock, highlighted that the broader self-storage sector has shown continued resilience and growth, driven by shifting consumer behaviour, urban densification and e-commerce expansion.
“What we have seen played out in other markets is happening right now in Australia, where the sector’s fundamentals – low operational costs, consistent cash flows and stable tenant demand – make it particularly attractive,” Hickey said.
“Importantly, we have been seeking an existing platform with scale, national diversification and a strong local brand. StoreLocal provides these and is a business that prides itself on innovation and best-in-class outcomes for customers and investors, something we are deeply aligned with.”
With more than $1 billion of secured capital, StoreLocal confirmed its objective to become a $2 billion platform. The company said its further growth will be driven by acquisitions and developments, in addition to the expansion of its third-party management platform and brand.
StoreLocal’s co-founder and chief executive, Hans Pearson, added: “Over the past 15 years, we have patiently established a nationwide platform of institutional quality, which offers outstanding risk- adjusted returns through a highly diversified tenant base, low capex, and high operating margins.
“The BlackRock team is an ideal cultural fit to bring the capital and expertise we now need to achieve our strategic goals. We will continue to expand by focusing on in-store income performance, scaling our technology, acquisitions and development, and growing our third-party management portfolio.”
BlackRock’s latest acquisition follows its purchase of infrastructure investment fund Global Infrastructure Partners and private markets-focused investment firm HPS Investment Partners last year, and more recently the acquisition of private markets data provider Preqin.
Its increased focus on private markets was highlighted by chairman Larry Fink in his letter earlier this year, in which he declared BlackRock’s next challenge is bridging the gap between public and private markets.
“BlackRock has always had a foot in private markets. But we’ve been – first and foremost – a traditional asset manager. That’s who we were at the start of 2024. But it’s not who we are anymore,” Fink said.
As the financial system continues to evolve, Fink argued the traditional 60/40 portfolio split between stocks and bonds is no longer an effective measure of diversification.
Instead, he said the future standard portfolio will look more like 50/30/20, with 50 per cent in stocks, 30 per cent in bonds, and 20 per cent allocated to private assets such as real estate, infrastructure, and private credit.
