Perth-based KBH Group has sold its self-storage portfolio to DBI Storage in a deal worth more than $84 million, giving the company cash to expand into an east coast market where demand continues to rise.
The deal involves a five-year management agreement for the portfolio's five self-storage facilities, including four KeepSafe Storage-branded businesses and the Welshpool Self Storage Property.
Once the sale is complete, KBH will however still own Coastal Service Units, a a self-storage facility servicing the south-west coast of WA, and Pier 21 Marina in North Fremantle.
Post-sale KBH will retain the rights to branding, intellectual property, proprietary systems and its people.
Founded in 2009 by Shaun Bain, Stuart Kenny, Kevin Bain and Nathan Hewitt, KBH has rapidly expanded in WA, building brand new KeepSafe facilities from the ground up with the first site opening in May 2015.
Of the four KeepSafe facilities sold to DBI, the property in Wangara was built just two years ago and comprises a selection of drive-up and internal ground floor units.
"We're extremely proud of what we have been able to achieve in a relatively short period," KBH Group co-founder and managing director Shaun Bain said.
"We have developed greenfield sites, acquired and improved existing sites and undertaken management of third party sites.
"In each of those facilities, we were able to deliver an industry leading experience to our customers, and exceptional returns to our shareholders and investors, in what has been a difficult trading period."
The announcement follows a big year for storage industry activity in 2020. If it weren't for COVID-19, National Storage (ASX: NSX) would have likely been acquired by one of three suitors, and the company managed to raise $300 million during the pandemic.
Later in the year Abacus Property Group (ASX: ABP) acquired the remaining 75 per cent of Storage King in November to gain total control of the business for $50 million.
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