National Storage REIT buys Townsville self-storage property for $17 million

National Storage REIT has entered into contract arrangements to buy a landmark self-storage asset at Townsville, Queensland's north-east for $17 million.

The company said the deal represented its first stand-alone acquisition and would be the largest asset by net lettable area in the portfolio. 

It comprises 1,467 storage units over 16,500 square metres of net lettable area. The purchase was made on an initial passing income yield of about 7%, said the company  based on the current occupancy of around 50% and excluding transaction costs. 

The acquisition will be funded from National Storage REIT's (NSR) debt facility. 

The 399 Woolcock Street centre was built in 2005 and features two, two-level buildings. 

NSR managing director Andrew Catsoulis said: “This acquisition presents a significant opportunity for National Storage to add value and capitalise on the synergies of our centre management platform, particularly around organic growth. We are of the view this provides a good opportunity for future growth in terms of occupancy and rates per square metre." 

Management said it continued to actively pursue acquisition opportunities in line with its asset management strategy.