Barings Takes Control of Australia’s Swift Storage in $130M Deal

US-based investment firm Barings has waded into Australia’s growing self-storage market, acquiring a controlling stake in Brisbane-headquartered Swift Storage. The A$200 million (US$130.2 million) transaction gives Barings majority ownership of both Swift’s operations and its portfolio of 15 self-storage centers, along with a pipeline of new developments across Queensland.

The acquisition marks Barings’ first foray into the self-storage sector in Australia and builds on a wave of recent institutional investment in the asset class, which has been attracting global capital. Swift, founded in 2022 by USS Funds Management, is known for its contactless, drive-up storage model, offering unmanned facilities that emphasize convenience and efficiency.

“What attracted Barings to this opportunity is the calibre of our Swift operating partners — they have a proven track record and have pioneered an efficient operating model for the industry,” said Tamara Williams, senior director of private equity real estate at Barings. “Self-storage has proven to be a resilient asset class in Australia, and Barings believes there are significant tailwinds and untapped potential in the future.”

National Expansion in Focus

Barings intends to scale Swift’s platform nationally, with five additional locations slated to open later this year. The company currently operates centers in Queensland and Western Australia, with storage units ranging from compact 2.25-square-meter lockers to larger 74-square-meter mini-warehouse spaces. All facilities are solar-powered.

The agreement between Barings and USSFM was brokered by MA Moelis Australia. The deal is still subject to standard regulatory approvals, including clearance from the Foreign Investment Review Board.

Barings, a subsidiary of MassMutual, manages $442 billion in global assets. The Swift acquisition continues the firm’s Australian expansion, which has included approximately A$2 billion in real estate investments over the past 18 months. Notable deals include the A$74 million purchase of Joondalup Square shopping centre in Perth and the A$94.1 million acquisition of a Melbourne warehouse previously owned by Charter Hall.

The company’s Australian real estate footprint grew significantly after its 2022 acquisition of Altis Property Partners, which added $4.3 billion in assets to its portfolio.

Demand Driven by Housing Pressures

The self-storage sector in Australia remains robust, with occupancy levels around 90 percent nationwide. 

“Australia’s housing affordability crisis is inadvertently becoming self-storage’s greatest growth driver,” said Vanessa Rader, head of research at Ray White Commercial. “As rental costs force downsizing and push residents to outer metropolitan areas, demand for storage solutions grows.”

Swift joins a growing list of platforms attracting major investment. Last year, Singapore’s sovereign wealth fund GIC partnered with National Storage REIT to form a joint venture aimed at developing and operating storage facilities, committing A$270 million and seeding the venture with 10 assets.

Meanwhile, Warburg Pincus-backed StorHub Group expanded its Australian presence with a purchase of three Sydney facilities in a deal worth over A$110 million, growing its network to 11 sites across Sydney, Melbourne, and Brisbane.