KSS October eKourier 2024

FEATURE

KSS ACQUIRES KIWI SELF STORAGE IN KILBIRNIE, WELLINGTON

SECOND CHATSWOOD CENTRE TO BE DEVELOPED

I n September, we completed the transaction to acquire an operating centre in the east of Wellington, NZ. Located near the airport in a tightly held precinct, this property represented a great opportunity to add scale to our presence in Wellington. I have always thought our existing Wellington centre in Thorndon was the best self storage location in the market. It has the best visibility and most convenient, best quality serving the inner markets of Wellington. I also believed that Kiwi had the second best location in the market. In addition, adding a second location allows for economies and efficiencies in operating in the market. When it was offered to market the opportunity was too compelling to miss. The property has 773 storage units, and 4,700 square metres available, and has been operating at 93% occupancy.

I n June we were successful in a competitive on-market campaign for the disposal of the former Westpac Disaster Recovery Centre. We acquired the property for $23.2 million in a hotly contested campaign where two other storage operators were in the running. Westpac had been spending millions of dollars each year maintaining the property in the event a catastrophic disaster were to take out their primary offices. The building was equipped with 500 workstations, screens, computers, air conditioning, back up generators, and back up batteries. Then Covid forced the Work From Home adaptation, and resulted in the obsolescence of the expensive DR infrastructure like their Chatswood property.

The property is located at 26 Smith St Chatswood, opposite Bunnings.

It is a 5,600 square metre 5-level building which we will repurpose into stage one of our project. In addition, we will develop a new 6-7 level building on the surplus land. Though we already own a centre in Chatswood, the scarcity of land in northern Sydney and growing population and high density will mean strong and increasing demand. We will be able to operate the stores cooperatively and allow some sharing of operating expenses.

Kilbirnie is our 10th New Zealand centre.

Sam Kennard Chief Executive Officer

Sam Kennard Chief Executive Officer

6 Kennards Kourier Oct 2024