Brookfield, GIC to weigh buyout of National Storage Reit: sources

The volume of mergers and acquisitions involving Australian companies as either targets or sellers has fallen to around US$70 billion this year

Brookfield Asset Management and Singapore’s GIC are jointly exploring a potential takeover of Sydney-listed National Storage Reit, according to sources familiar with the matter.

New York-based Brookfield and GIC have been in talks with banks for financing as they contemplate an offer for National Storage, said the sources, who asked not to be identified as the information is private. Shares of National Storage have fallen about 10 per cent in the past year, giving the trust a market value of roughly A$3.2 billion (S$2.7 billion).

Deliberations are ongoing and Brookfield and GIC could still opt not to proceed with an offer, the sources said. A spokesperson for National Storage was unavailable to speak on the phone, and did not reply to an e-mail seeking comment. A representative for Brookfield declined to comment, while GIC could not immediately comment.

Any deal would help rejuvenate dealmaking in Australia, where activity has stumbled with the collapse of potential blockbuster deals, including BHP Group’s now-aborted approach for US$43 billion rival Anglo American.

The volume of mergers and acquisitions involving Australian companies as either targets or sellers has fallen to around US$70 billion this year, a 30 per cent decline from the same period in 2024, according to data compiled by Bloomberg.

The Australian Financial Review earlier reported details of the possible bid for National Storage.

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GIC, one of the world’s largest sovereign wealth funds, does not publicise its assets under management, but Global SWF estimates the firm manages assets worth US$936 billion. In July, GIC said that real estate valuations were potentially bottoming, presenting attractive investment opportunities.

Ankur Gupta, Brookfield Asset’s Asia-Pacific real estate head, said in May that more industrial deals could be in store, though the firm hasn’t set a target. Brookfield manages about US$40 billion in real estate in Asia-Pacific and the Middle East. In the same month, Brookfield agreed to buy a S$535 million portfolio from a Reit backed by Singapore state investor Temasek Holdings.

National Storage operates more than 274 storage centres across Australia and New Zealand. It’s the largest self-storage provider in Australia. Its net income for the latest financial year was about A$236 million, a 2.5 per cent increase from the previous year. BLOOMBERG

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