Information Memorandum for Insurance Broking And Risk Manage

KENNARDS SELF STORAGE

Disruptors Key disruptors to the self-storage sector are as follows:

Spacer – A community self-storage marketplace that connects people in their local area looking to rent out storage space with people who own unused storage space i.e. a second garage not in use at a residence.

Implementation of more stringent regulations – A clamp down from the regulatory bodies to implement more stringent regulations relating to building approvals for new and existing facilities and what is potentially stored within a self-storage facility.

Increase of Strata Titled Storage Units – The growth in smaller industrial strata titled complexes providing storage spaces for purchase or lease.

COVID-19 – The global threat of COVID-19 has created recent volatility in financial markets and therefore the global economy. Further downturn would incur restrictive market conditions and therefore potentially influence the decrease in capital values.

Market Operators and Participants The vast majority of Self-Storage facilities within Australia and New Zealand are owned by private entities (either single or multiple facilities. These facilities are a mix of two business model types being an owner operator or a management/franchise structure.

A list of the major market operators is provided in the below graph:

Storage Choice Fort Knox (Vic) Wilson Storage All Secure National Mini Storage U Store It Number of Facilities

9

10

9

10 10 10 10

National Storage Storage King Kennards Storage Fort Knox (Qld) StoreLocal Safe n Sound Rent a space Frys Self Storage

13

14

18

26

90

165

180

0

20

40

60

80

100

120

140

160

180

200

Source: Colliers International

As depicted above, the facilities held by these operators comprises 574 facilities, accounting for approximately 32% of the total number of facilities within Australia and New Zealand.

Information Memorandum Kennards Self Storage June 2020 4