KSS Information Memorandum 2021

Self Storage Industry Overview

(Courtesy David Blackwell)

The Self Storage Industry in Australia emerged in the 1970’s with the development of properties to provide small areas of secure storage for domestic and commercial uses. Neville Kennard is credited with establishing the first storage centre in 1973, as an adjunct to a Kennards Hire Centre. Early development in the industry in the 1980’s and 1990’s involved a limited number of major, multi site owners such as Millers Self storage and Kennards Self Storage and a diverse group of single facility operators. Early self storage developments involved conversion of existing warehouse buildings. Whilst this remains a common practice, it is now also common for facilities to be purpose built. Contemporary self storage development falls into three types depending on property availability and feasibility. 1. Conversion of existing buildings - self storage can offer effective adaptive re-use of existing otherwise obsolete buildings. This mostly occurs in dense inner-urban areas. 2. Purpose-Built ‘Ranch’ style - large land areas are used with drive-up storage buildings with most spaces having immediate driveway access. 3. Purpose-Built Big Box - Large Purpose-Built multi storey buildings have emerged as a feasible way to utilise smaller expensive locations. The Self Storage Industry maintains high practice standards in a self-regulated, commercial environment. A standard form of storage agreement clearly establishing the rights and obligations of both facility operators and customers is promoted by the Self Storage Association of Australasia and adopted by most self storage facility operators. Development of the industry in New Zealand closely followed the development of the industry in Australia with major operators including National Mini Storage in Auckland. Kiwi Self Storage (Auckland and Wellington) and Storage One (now operated as Kennards Self Storage facilities). Over the last few years major Self Storage operators and institutional investors such as National Storage, Kennards Self Storage and Abacus pursuing aggressive acquisition programmes and building substantial and geographically diverse portfolios. This also saw Australian based operators taking a major presence in New Zealand self storage markets. Industry Asset Quality Commentary Self Storage is like any other industry or property sector, with a diverse range of asset quality. Self Storage assets can vary in quality due to their age; construction quality; maintenance and upkeep; operator strategy; size and location.

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