The changing face of self-storage in Asia
“Operators like Singapore-based Lock+Store are leading the self-storage revolution in the region”, says industry veteran Helen Ng
‘Lock+Store is looking to expand more aggressively in regional markets with strong growth potential, ensuring the industry’s continued growth and evolution,’ says Helen Ng, CEO of General Storage Company.
As demand for self-storage solutions grows in Asia, industry leaders are adapting to meet the evolving needs of customers by embracing innovative and sustainable practices.
In recent years, the region’s self-storage industry has experienced robust growth due to factors such as the shrinking of apartment sizes in the region’s cities. This trend, coupled with rising affluence, has led to a surge in demand for more space to store one’s possessions; whether it’s winter clothing and equipment or collectibles.
Singapore, in particular, has seen keen interest in temporary storage space due to housing construction delays and post-pandemic renovation projects. Meanwhile, customers today have become more particular in their requirements, says Helen Ng, CEO of General Storage Company, which operates Lock+Store in Singapore and Malaysia, and The Store House Hong Kong. Lock+Store, which runs 13 storage facilities in Singapore, has been a leading light in the industry’s transformation.
“When choosing a storage provider, customers tend to choose an operator with a good track record, prioritising clean, well-lit facilities with wide corridors for trolleys over price,” explains Ms Ng. Amid this changing landscape, operators like Lock+Store have upgraded their offerings, providing more air-conditioned units, secure 24/7 keycard access, 24/7 CCTV monitoring and strategic locations closer to customers. The firm increasingly employs data analytics to determine customer preferences and identify key trends.
As competition in the sector intensifies, industry leaders are also strengthening their commitment to environmental sustainability and social responsibility. For instance, Lock+Store launched its mission of creating a “green and caring tomorrow with self-storage” in 2022 and is the first and only self-storage operator to join the SGRecycle network, a nationwide recycling initiative. The company has also established paper and textile waste stations at its flagship Chai Chee facility, and publishes monthly reports on waste collection in an effort to be transparent.
Other ESG (Environmental, Social, and Governance) initiatives implemented by Lock+Store include the installation of rooftop solar panels and edible gardens at the company’s Chai Chee facility to contribute to food sustainability. A proportion of the greens harvested will be donated to charity every month.
Increasingly, self-storage operators are also supporting charities and non-profit organisations as part of their corporate social responsibility efforts. On its part, Lock+Store supports the online crowdfunding platform Ray of Hope and actively participates in partners’ events, such as the distribution of Iftar to the charity’s beneficiaries during Ramadhan and breaking fast with beneficiaries.
Innovation is another key driver for the self-storage sector. Lock+Store recently launched an IoT-enabled, remotely-operated facility in the affluent residential township of Sri Hartamas, Kuala Lumpur last year, with plans to open another such facility in the Malaysian capital. The technology will also be deployed to selected facilities in Hong Kong and Singapore. The technology used in these next-generation spaces allows the company to streamline operations and optimise its workforce, while still providing customers with a seamless experience.
In recognition of their industry-leading self-storage solutions, Lock+Store Singapore and The Store House Hong Kong won the Silver and Gold awards for the Best Storage Facility, in the Services category, respectively, in the Readers’ Choice Awards 2023 organised by Expat Living in both countries.
Championing the industry
The ongoing transformation of the self-storage sector has drawn the attention of global investors, further altering the competitive landscape. Private equity funds have been piling into self-storage assets in recent years, driving up the costs of assets, and, consequently, leading to smaller players being squeezed out, reveals Ms Ng.
In February this year, real estate private equity firm Prime Group Holdings LLC announced that it had raised US$2.5 billion for Prime Storage Fund III, its third fund focused on self-storage assets. The offering is the largest private equity fund ever raised to invest exclusively in self-storage properties.
“This is just the beginning of more multibillion-dollar deals involving the industry. Everyone wants a slice of our recession- and pandemic-resilient industry. But this also reflects the industry’s attractiveness to investors as a highly profitable real estate asset class,” says Ms Ng, who is also the Chair of the industry body Self-Storage Association Asia (SSAA).
Amid a fast-evolving operating environment, SSAA plays an increasingly vital role in promoting the industry through research, education, government advocacy, and networking opportunities. For instance, the annual Self-Storage Expo Asia event organised by SSAA brings together industry leaders, investors, stakeholders, and service providers.
The association also offers operators in Hong Kong an official endorsement of their sites under its SAFE Programme. The endorsement means that each site has been deemed compliant, or is en route to becoming compliant, under the regulations of the Hong Kong SAR Government. Ms Ng notes that there are discussions to expand the programme to Singapore.
Growing responsibly
Looking ahead, Lock+Store will seek to expand its presence in the region, while meeting its customers’ storage needs in a socially responsible way. These plans come as Singapore’s JTC Corporation embarks on a review of the local self-storage industry, which could hamper the growth of the sector here.
“Lock+Store is looking to expand more aggressively in regional markets with strong growth potential, ensuring the industry’s continued growth and evolution,” says Ms Ng.
She adds: “As the industry continues to evolve with the times and stays relevant to tomorrow’s consumers, my vision is for self-storage to become the top-performing real estate asset class in the region.”
Rising to the top
HELEN Ng, Chair of Self-Storage Association Asia (SSAA) and CEO of General Storage Company has been instrumental in shaping investors’ perception of self-storage in Asia, and, more broadly, the business community’s view of women leaders in a traditionally male-dominated industry.
With a background in property development, Ms Ng became Singapore’s first female self-storage hub CEO when she took over the Lock+Store business from real estate developer Mapletree in November 2010. However, the road to becoming a successful industry leader had a bumpy start.
“When I first took over Lock+Store more than 10 years ago, I was not treated seriously and with the same level of respect as my male peers. To succeed in this industry, you need to be able to identify suitable sites against a backdrop of regulatory risk,” she says.
However, she gained the respect of her industry counterparts after steering Lock + Store to become one of the leaders in the region’s self-storage sector. As chair of the SSAA, she is now able to help chart the path forward for the entire industry.
“Over time I have managed to garner the acknowledgment and support of my peers in Asia. With their support, I have been able to lead discussions fronted by the SSAA with regulators in Asia and set industry benchmarks widely adopted by our members.”
For all these efforts, Ms Ng received the Singapore Women’s Weekly Great Women of Our Time award in the “Finance and Commerce” category in 2013, and the Executive of the Year Building Services & Facilities award from a business magazine in Singapore in 2022.
Article from The Business Times
https://www.businesstimes.com.sg/singapore/smes/c-suite-conversations/changing-face-self-storage-asia
