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M&A Transaction•

Barings Enters Australian Self-Storage Market with $200M Deal - InforCapital

Barings acquires Swift Storage for $200M AUD, marking its entry into Australia's fast-growing self-storage sector.

AM
Alvaro de la Maza

Partner at Aninver

Key Takeaways

  • Sector: Real Estate.
  • Geography: Australia.

Analysis

Barings, a global investment manager, has made its debut in Australia’s self-storage sector by acquiring a majority stake in Swift Storage, committing $200 million AUD ($134 million USD) in seed capital. The deal includes ownership of both Swift’s operating business and its existing portfolio of 15 purpose-built, contactless self-storage facilities.

Founded by USS Funds Management (USSFM) in 2022, Swift Storage has carved a niche in the market with its drive-up, fully automated storage units, eliminating the need for on-site staff. The company’s efficient, tech-enabled model has positioned it as a forward-thinking operator in Australia’s growing self-storage industry.

This acquisition not only signals Barings’ entry into self-storage but also adds to its broader Australian real estate portfolio, which includes seniors living developments and regional airport investments. Over the past 18 months, Barings has invested more than $2 billion AUD ($1.34 billion USD) across a diversified real estate platform in the country.

According to Tamara Williams, senior director of private equity real estate at Barings, self-storage offers attractive fundamentals and resilience. “What attracted Barings to this opportunity is the calibre of our Swift operating partners,” Williams stated. “They have a proven track record and have pioneered an efficient operating model for the industry.”

Luke Bryant, director in private equity real estate at Barings, added that the Swift investment complements the firm’s existing exposure to industrial and logistics real estate across Australia’s major urban centers.

From the seller’s side, USSFM co-founder Jonathan Perrins emphasized Swift’s operational success, noting it is now primed to scale. “Swift is a proven concept, well-received by customers, and ready to expand into larger urban and regional markets,” he said.

Fellow co-founder Robert Gregg added that the deal represents a successful exit for early investors in the Swift Storage Trust (SST), allowing them to realize returns earlier than anticipated. “This transaction also ensures Swift has the capital needed to unlock its full potential,” Gregg said.

SST, developed and managed by USSFM, currently owns and operates 12 assets, with a committed pipeline to grow to 16 facilities by the end of 2025. The sale was facilitated with advisory support from MA Moelis Australia.