This figure marks a significant increase from the $80 million paid five years ago, signalling a shift in Blackstone's real estate strategy. Early interest in the sale has reportedly come from around 20 groups, with Kennards and BlackRock identified as strong contenders.
CBRE, the commercial property firm overseeing the sale, has opened a data room for the KeepSafe-branded assets. Five properties are included in the offering, with the anticipated price reflecting a yield of approximately 4.5%. While this indicates investor appetite, it remains lower than the 6.5% yield available from similar assets in the United States, prompting speculation that Blackstone may be reassessing its approach to the Australian market.
Blackstone previously expanded its Australian presence with the 2021 acquisition of Fort Knox Self Storage in a $400 million deal covering properties across Melbourne. Though these were once considered for sale, they have since been withdrawn from the market. The company is also understood to have explored a potential portfolio arrangement with Abacus Group, though it may now be rethinking its long-term strategy in the sector.
This development comes amid continued growth in Australia’s self-storage industry. Population increases and a booming e-commerce sector are driving demand for secure and convenient storage. Despite favourable local conditions, Blackstone appears to be shifting its focus back to the US, where it is pursuing higher-yield opportunities, including IPO plans for companies such as Copeland, a heating and cooling manufacturer valued at over $21 billion.
