Self-storage provider RedBox acquires three properties in HK

Stuart Jackson, CEO, InfraRed NF

Hong Kong-based premium self-storage provider RedBox Storage Limited (RedBox) has acquired three properties in the city after deploying a sum of $50 million committed by Chinese real estate investment manager InfraRed NF.

In a statement, InfraRed, which acquired a 90 per cent stake in RedBox after the investment, said the self-storage provider has completed three property purchases in Yau Tong, Tuen Mun, and Tsuen Wan districts.

The acquisitions expand RedBox’s gross floor area (GFA) by 116 per cent, making it the fourth largest self-storage operator in Hong Kong in terms of GFA, InfraRed said.

The most recent purchase by RedBox, under InfraRed NF’s ownership, involved the eight consecutive floors in the uppermost levels of the Metropolitan Industrial Building in Tsuen Wan district. The purchase of the floors included the acquisition of the self-storage business of Canaan Mini Storage Company Limited, which operates from the site.

Self-storage is one of the fastest growing asset classes in alternative real-estate, according to InfraRed NF and RedBox.

Supply in Hong Kong, however, is limited as self-storage per capita in the city is only 0.6 square feet, compared to other developed markets such as New York (3.4 sq ft) and Sydney (1.9 sq ft).

According to a CBRE research note, there was a shortfall of 200,000 sq ft of self-storage stock in Hong Kong in 2015.

“Self-storage in Hong Kong continues to show significant growth potential with smaller residential unit sizes, higher income levels and an increasingly consumption-driven society driving the sector,” said InfraRed NF CEO Stuart Jackson.

He said InfraRed NL will deploy further capital to further support the expansion plans of RedBox in Hong Kong.

InfraRed NL acquired RedBox in April 2018 as part of its plan to create a “market-leading self-storage platform” in Hong Kong through a series of direct property acquisitions.

RedBox is InfraRed NF’s second investment in the self-storage market after it invested $28 million in China Mini Storage, an intelligent technology-led self-storage operator in China, in 2017.

Founded in 2014 by E3 Capital Partners, RedBox claims to be one of the market leaders in Hong Kong in terms of security and strategically located sites that are being designed for fire safety.

“The support of InfraRed NF has allowed us to expand the portfolio as we continue to deliver bespoke and flexible storage solutions for our customers,” said RedBox CEO Simon Tyrrell.

Also Read:

PE firm InfraRed acquires 90% of Hong Kong’s self-storage firm RedBox

HK-based InfraRed NF closes $92.2m mezzanine financing deal

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.