Self-Storage Portfolio Matures for South African Developer Acucap Properties

The self-storage portfolio held by South African commercial real estate developer Acucap Properties has grown to the point where company officials said it may be appropriate to list its self-storage assets separately from the rest of its portfolio. Last June, Acucap entered a strategic joint venture with Faircape and SA Self Storage Investments (SASSI) to develop several self-storage sites. Faircape is a property investment, development and management firm that includes Stor-Age Self Storage among its companies. SASSI is South Africas largest self-storage investment trust.

The joint venture has produced 12 operating self-storage facilities, with nine under construction and nine additional locations in the process of acquisition. The facilities will be rebranded under the Stor-Age name, according to Paul Theodosiou, Acucaps managing director. Stor-Age operates more than 20 facilities throughout South Africa, with its corporate office in Cape Town.

Together, the overall portfolio of 30 stores comprising a gross lettable area of 230,000 square meters will be valued at around [$150 million] on completion, Theodosiou said. This is close to a size considered appropriate for a separate listing.

When the companies announced the joint venture last year they planned to have 23 operational sites worth approximately $118 million.

Last week, Acucap reported a 5 percent growth in distributions over its entire portfolio for the fiscal year, which ended March 31. Revenue grew by nearly 2 percent, while the value of the companys portfolio increased 7.7 percent to approximately $792 million.