In April 2018, InfraRed NF Investment Advisers (“InfraRed NF”) announced the acquisition of a 90% shareholding in RedBox Storage (“RedBox”), with an initial commitment of US$50 million in support of a strategy that aims to create the leading self-storage platform in Hong Kong. This marked InfraRed NF’s second investment in the self-storage market, after investing US$28 million in China Mini Storage in May 2017.
In the South China Morning Post and The Straits Times, Stuart Jackson, CEO of InfraRed NF as well as Simon Tyrrell and Oliver Leung, CEO and COO of RedBox respectively, discuss the self-storage market opportunity in Hong Kong as well as RedBox’s strategy for growth.
Mr. Jackson commented that while it is clear residential prices in Hong Kong are in nosebleed territory, what is less obvious is the impact of high residential prices and smaller unit sizes, combined with high income levels and a consumption-driven society, in generating considerable demand for self-storage.
Mr. Tyrrell sees significant potential for RedBox to grow and become the market leader in Hong Kong. He highlights that the company is expanding its existing operations across additional sites, with seven or eight further properties identified in key districts, while further developing its technology and logistics platform to lead the industry into the next generation of self-storage.
Mr. Leung added that following the Ngau Tau Kok fire in 2016, several self-storage operators were forced to shut down causing fragmentation in the market. As such, RedBox has been trialling new, regulator-approved innovations in fireproofing at its facilities in Sha Tin and Chai Wan. Such initiatives and stricter regulations for self-storage operators will revolutionise the industry going forward, according to Mr. Tyrrell, as they will allow for space to continue being very efficient while ensuring a very safe environment for storage.
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