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National Storage REIT has agreed to a USD 2.65 billion takeover by a Brookfield-GIC consortium, offering a 26.5% premium over its late November share price and sending shares to a record AUD 2.81. The deal, now the largest take-private acquisition of an Australian real estate company, follows previous non-binding bids and reflects growing investor interest in retail and self-storage assets. The board has unanimously endorsed the transaction, which is expected to close by Q2 2026, highlighting a notable development in an otherwise quiet Australian M&A market.
Australia's National Storage REIT has agreed to a takeover offer worth AUD 4 billion (USD 2.65 billion) from a consortium backed by Brookfield Asset Management and Singapore's GIC, pushing the company's shares to an all-time high. The offer of AUD 2.86 per share represents a 26.5% premium over the company's closing price in late November and comes after the consortium conducted thorough due diligence and signed a binding agreement. Advertisement
The announcement sent National Storage shares to AUD 2.81, making the REIT one of the top performers on the ASX 200 index, which slipped slightly overall. Analysts note that while the bid is slightly below the 18% historic average control premium for AREIT transactions over the past decade, the scale of the deal and the relationship between the parties make it reasonable.
This acquisition now ranks as the largest take-private deal for an Australian real estate company, surpassing Brookfield's AUD 1.27 billion purchase of Aveo Group in 2019. Analysts suggest that future M&A activity may focus on the retail sector, which is currently attracting renewed capital interest.
Founded in 1995, National Storage operates more than 270 locations across Australia and New Zealand, serving both residential and commercial clients. The company has previously drawn interest from private equity firms, including Warburg Pincus and U.S.-based Public Storage in 2020, though those discussions did not result in a transaction. Earlier this year, a consortium led by South African billionaire Nathan Kirsh and Public Storage made a AUD 2.17 billion offer for Abacus Storage King, which also did not proceed.
The deal stands out in an otherwise subdued Australian M&A market this year, where several high-profile bids, including BHP's offer for Anglo American and EQT AB and CVC Asia Pacific's proposed AUD 5.2 billion takeover of AUB Group, failed to materialize. National Storage's board has unanimously recommended the Brookfield-GIC deal, noting it will support the transaction if no superior proposal emerges and an independent expert confirms it serves the best interests of shareholders. The acquisition is expected to close by the second quarter of 2026.
Source Reuters
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