Post by : Rameen Ariff

Australia's National Storage REIT (NSR.AX) announced on Monday that it has reached an agreement for a A$4 billion takeover by a consortium supported by Brookfield Asset Management and Singapore's GIC. The news propelled National Storage shares to a record high, reflecting strong investor confidence in the deal.

The takeover comes shortly after National Storage disclosed in late November that it had received a non-binding proposal from the consortium. Under the agreed terms, NSR shareholders will receive A$2.86 per share in cash, representing a 26.5% premium over the company's closing price on November 25.

The consortium’s backing by Brookfield, a global asset management firm, and GIC, Singapore’s sovereign wealth fund, underscores the growing international interest in Australia’s real estate and storage sectors. Analysts say the deal highlights the value of National Storage’s network of self-storage facilities across the country, which has become increasingly attractive to investors seeking stable returns.

Market observers noted that the premium offered in the takeover represents a significant reward for existing shareholders and reflects the strategic value of National Storage’s assets. The agreement also indicates the consortium’s confidence in the long-term growth potential of Australia’s self-storage industry, driven by rising demand for storage space amid urbanisation and changing consumer needs.

The takeover is expected to undergo regulatory and shareholder approvals before completion, but the agreement has already boosted confidence in the REIT sector and may encourage further investment from both domestic and international players.

#Business News #Global