Brookfield Makes $4B cash proposal for National Storage

Brookfield and Singapore’s GIC have put forward a $4 billion cash proposal for National Storage REIT. The Australian Financial Review reports that the offer could reach a valuation of roughly $6.8 billion once debt and development commitments are counted, setting the stage for what would be the largest real-estate take-private ever attempted in Australia.

The $2.86-per-security offer lands more than 26 percent above National Storage’s last trading price before its halt and sits about 11 percent higher than its net tangible asset backing.

National Storage said it has granted the Brookfield–GIC consortium exclusive due-diligence access through December 7, following earlier behind-the-scenes proposals and limited information exchanges.

The bid adds fresh momentum to institutional interest in the sector, coming on the heels of the unsuccessful $2.2 billion play for Abacus Storage King earlier this year.

National Storage founder Andrew Catsoulis steered the company onto the ASX more than a decade ago. Since listing, Catsoulis has overseen the platform’s expansion to more than 280 facilities across Australia and New Zealand, with over 50 additional projects planned and earnings projected to rise from $164 million to above $173 million this year.