$1 Billion cash injection to drive StoreLocal expansion
Anna Mortimer
Self Storage Association
of Australasia
In May this year, SSAA member StoreLocal announced a landmark deal with global institutional investor BlackRock. The injection of AU$1 Billion in capital, through a majority stake in the company’s assets and platform, will drive StoreLocal’s ambitious growth plans to create an AU$2 Billion self storage platform in Australia.
Anna Mortimer, SSAA, spoke with StoreLocal Co-Founder and CEO Hans Pearson about this industry-shaping transaction and what it means for the future of self storage in the region.
Founded in 2010, StoreLocal is the fourth largest operator in Australasia, owning and managing more than 40 self storage assets across Australia. Supported by private investors for more than 15 years, co-founders Hans Pearson & Rob Mactaggart have raised private capital through direct relationships to steadily amass a portfolio as the industry’s profile emerged in the mid-2010s.
StoreLocal’s operations platform and brand were established with Mark Greig in 2015 and grew to become a national business. CEO Hans Pearson and COO Mark Greig will continue to lead the business going forward as it moves into its next phase of growth and delivers on its long-held strategic ambitions.
“We’re just as excited and enthusiastic about the business we founded 10 years ago,” says Mr Pearson. “Moving to StoreLocal 3.0 is just another stop along the way - another milestone - and gives us and our established team fresh energy for what’s next.”
“Pearson says the self storage industry in Australia was at an interesting inflection point,
with institutionalisation happening rapidly.”
Pearson says the self storage industry in Australia was at an interesting inflection point, with institutionalisation happening rapidly.
“The drive to reset our external funding came from a deliberate long-term growth strategy of being ahead of the next institutional phase of the industry”, he says. “When we saw this happening at much greater pace than expected, both speed to market and scale became critical, along with a deep capital solution.”
Over the past 15 years, StoreLocal had patiently established a nationwide platform of institutional quality, which offers outstanding risk-adjusted returns through a highly diversified tenant base, low capex, and high operating margins.
“It made sense to bring everything under one roof with a seamless and easily understood investment structure to attract a major institutional partner.”
StoreLocal saw the BlackRock team as an ideal cultural fit to achieve their strategic goals.
Ben Hickey, Head of Australia Real Estate at BlackRock, explains the company’s attraction to self storage reflected the broader market outlook for the sector, which has shown continued resilience and growth, driven by shifting consumer behaviour, urban densification, and e-commerce expansion.
“What we have seen played out in other markets is happening right now in Australia, where the sector’s fundamentals - low operational costs, consistent cash flows, and stable tenant demand - make it particularly attractive.”
“Importantly, we have been seeking an existing platform with scale, national diversification, and a strong local brand. Storelocal provides these and is a business that prides itself on innovation and best-in-class outcomes for customers and investors, something we are deeply aligned with.”
Now with over AU$1Billion of secured capital, StoreLocal plans to deploy its growth strategy. Key drivers include the development of greenfield sites, acquisition of existing stores and portfolios, the ongoing expansion of its third-party management portfolio (currently more than 10 stores), as well as organic growth.
Mr Pearson says that StoreLocal remains completely committed to its investment in innovation, proprietary data analytics, and 100% unmanned operating model.
The company implemented pioneering remote management technology in 2019, which accelerated through the COVID-19 pandemic. Since then, StoreLocal has been the market leader in operating a 24/7 unmanned store model. Apart from two or three of its third-party management stores - where the owners want to retain in-store staff - all other owned and third-party management stores are 100% remotely managed.
As far as we understand, StoreLocal is the only eyes-on 24/7 operator in the marketplace.
“As far as we understand, StoreLocal is the
only eyes-on 24/7 operator in the marketplace.”
The company is in the process of relocating its customer experience centre from Fiji to the Philippines, where it runs StoreLocal’s off-shore operation. Remote managers have eyes-on stores 24/7, along with sales and experienced experts available around the clock. Contractors manage store maintenance which is completely automated through StoreLocal’s own proprietary technology.
“It just works, says Mr Pearson. “As we started to test and measure this operating model over the years, feedback on customer experience got better and better, and operating margins have expanded.”
(Left to right)
Mark Greig, COO and Hans Pearson, CEO of StoreLocal
StoreLocal has been building out its data capability for more than five years. The company has had a part-time data scientist on staff since 2020 who has moved to work in a full-time capacity this month.
“For five years, Renee Lin’s job has been to capture, analyse and interpret the data across our stores”, according to Mr Pearson. “She has been quietly building our analytics and AI capability, which has created efficiencies in the way we organise and interpret this data.
“We’ve done the hard yards and the result is higher operating margins and the ability to scale. To have the world’s largest institutional investor invest in us, on the basis that we built a national business of institutional quality, and to back our team to execute on our strategy, is super rewarding. “
“To have the world’s largest institutional investor invest in us, on the basis that we built a national business of institutional quality, and to back our team to execute
on our strategy, is super rewarding. ”
“We’re passionate about self storage – it’s a great sector and there are good people in it. The industry has changed so much since I started out; the quality of built product is a mile from where it was 15 years ago. We’re seeing totally unmanned stores and global institutions are knocking on our doors. It’s incredible to see how far the industry has come.”