Industry Experts React: Maple Leaf Self Storage Deal In Canada

In a record-breaking deal finalized May 12, QuadReal Property Group, the real estate investment arm of the British Columbia Investment Management Corporation (BCI), acquired the Maple Leaf Self Storage portfolio. It’s a transaction valued at more than $500 million, with some experts estimating the sale price to be much higher (JBW Commercial real estate company in Victoria just put out an email stating that many in the self-storage community believe the transaction closer to $960-975 million dollars). Either way, the consensus is that the deal is a significant vote of confidence in the Canadian self-storage sector’s revenue potential, scalability, and resilience in a volatile economy. 

The Maple Leaf portfolio consists of 15 properties, amounting to more than 17,000 storage units and 1.7 million square feet of net rentable area. The combined assessed value of $535,237,000 is based on publicly available property assessment data in British Columbia and Alberta and does not include one property in West Vancouver that is part of the same legal parcel as the Park Royal Shopping Centre. Of course, property assessments don’t always reflect true market value, but the gap is usually not significant. 

Maple Leaf Self Storage has been operating for over 40 years. Its facilities are mainly modern self-storage buildings offering a range of amenities, including drive-in loading bays, multi-level storage, security, and other features. The brand also operates a retail network within some of its facilities, providing moving and storage supplies and services. The properties were owned by West Vancouver-based Larco Investments, a private firm led by the Lalji family that also owns the Park Royal Shopping Centre and Fairmont Hotel Vancouver, among other assets. Self-Storage Canada reached out for comment but did not receive a response. 

Vancouver-based QuadReal, which currently has 15 global offices, employs nearly 2,000 people, and has about $95 billion in assets under management, did provide the following statement. “This investment is in direct alignment with QuadReal’s strategy to invest in newer generation storage facilities in high-density and undersupplied markets. Maple Leaf Self Storage joins QuadReal’s portfolio of operating platforms.” 

JBW reports that QuadReal plans to keep Maple Leaf's current management instead of hiring a third-party manager. “If the results fall short, they may consider switching to external management to boost portfolio performance,” the company writes in an email. “Increasing operational income and redeveloping at least two sites are crucial for a strong return on this portfolio acquisition.” 

The 15 Facilities 

Maple Leaf Self Storage properties and their assessments, in order of value, are listed below. 

*Part of the Royal Park Shopping Centre 

QuadReal’s website now highlights the Maple Leaf Self Storage portfolio on its website within the self-storage tab. 

This acquisition builds on QuadReal’s existing interest in the self-storage sector. In 2022, the firm launched a strategic partnership with U.S.-based Store Space Self Storage, a self-storage owner-operator and third-party management company headquartered in Florida. The venture was seeded with a $200 million acquisition of 13 properties totaling over 9,000 units and 1.1 million square feet in seven states. Store Space has continued its growth trajectory since then, expanding its portfolio to over 75 properties in 21 states. It illustrates the scalability potential QuadReal may now aim to replicate in Canada. 

Industry Leaders React 

MSM asked several industry leaders for their thoughts on the Maple Leaf acquisition; the response was overwhelmingly positive. 

“While I’ve only recently had the chance to meet Remco Daal [president of QuadReal], it’s clear that they bring a unique and fresh perspective to the Canadian self-storage space. Their investment thesis is different from that of traditional operators, shaped by their institutional scale and long-term outlook, and that’s definitely a positive for the industry … 

… Their future expansion, including into the Greater Toronto Area, along with the acquisition of the management platform and its strong team, signals a serious commitment to the asset class and raises the bar for all of us. As competition evolves, customers stand to benefit the most from the elevated standards and innovation this kind of investment brings.”

—David Allan, President, Apple Self Storage 

“Self-storage is well known as a cash-flowing landbank. As the dominant player in one of the tightest real-estate markets on earth, it was only a matter of time before someone scooped up these assets. Hats off to the team at Maple for building something truly irreplaceable.”

—Simon Berman, Co-Founder and CEO, Montreal Mini Storage 

“The transaction is consistent with the growing trend of market consolidation and the entrance of new players in the market with large amounts of capital and resources behind them.”

—Clive Bradley, Vice President–Canada Self Storage Group, CBRE 

"It’s great to see more institutional capital flow into our sector. This is the largest transaction in Canadian history, and it comes at a time when customer service and digital marketing are the keys to success in the industry. Self-storage is not a passive real estate investment as many think. It is an active, operating company with new tenants moving in and out daily. Exciting times ahead!”

—Jason Koonin, CEO, Bluebird Self Storage 

“We are currently researching every detail of this significant transaction, which appears to be a record breaker for Canada and a huge leg up for the industry as a whole. Institutional-grade investment into the self-storage market in Canada proves that the industry is maturing and ready for the next step …

… Preliminary numbers on this transaction indicate the sale price between $960 million to $975 million, or between $565 and $575 per square foot rentable, assuming 1.7 million square feet rentable. Going-in capitalization rate around 2.90 percent to 3.0 percent, stabilizing around 4.50 percent to 4.75 percent. Portfolio transactions of this caliber typically factor in a portfolio premium, so we do not expect to see these capitalization rates on a typical single, or smaller portfolio, transaction …

… We are thrilled for our friends at Maple Leaf and wish QuadReal generations of success in the self-storage industry in Canada!”

—Scott Humphreys, President, Canadian Self-Storage Valuation 

“This is another clear affirmation of the ongoing and intense interest in the Canadian self-storage industry by institutional players on both sides of the border. The valuation appears to be sky-high, but I expect QuadReal will move aggressively to improve both the top line and margins for the portfolio.”

—Andrea Lafrechoux, Director of Acquisitions, Montreal Mini  

“This sale marks a significant shift in the Canadian self-storage landscape. To see a large Institutional investment group jump directly into a major Western Canadian portfolio is a bit surprising, particularly since their offer won against prominent, experienced storage operators who were as equally interested in the portfolio. It’s certainly a strong vote of confidence from a prominent group that is new to the self-storage industry. I’m sure we will all be watching their operational integration closely and with great interest.”

—Robert Madsen, President, Canada Self Storage Association (CSSA) and U-Lock Mini Storage  

A New Milestone 

This record-setting acquisition highlights the growing institutional appetite for self-storage as a viable real estate asset class in Canada, and all eyes will now be on how QuadReal integrates and operates this high-profile portfolio. The Maple Leaf deal may mark not just a milestone but a new baseline for what strategic storage investment looks like in the Great White North. 

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Brad Hadfield is MSM’s website manager and a staff writer for Messenger and Self-Storage Canada. 

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