InfraRed NF successfully deploys its committed capital in its Hong Kong self-storage investment

  • USD$55m of initial capital committed to RedBox successfully deployed
  • Three properties acquired in last year have expanded the GFA of the RedBox portfolio by 116%
  • Further growth opportunities with compelling market dynamics

InfraRed NF, the leading Greater China real estate investment manager, is pleased to announce that it has successfully deployed its committed capital in RedBox Storage Limited (“RedBox”), the premium self-storage provider in Hong Kong.

InfraRed NF acquired a 90% stake in RedBox in 2018 committing USD$55 million for property acquisitions across Hong Kong. This capital has now been successfully deployed in three property purchases in Yau Tong, Tuen Mun and Tsuen Wan districts. The most recent purchase in Tsuen Wan district involved the acquisition of eight consecutive floors in the uppermost levels of the Metropolitan Industrial Building. The purchase of the floors also included the acquisition of the self-storage business of Canaan Mini Storage Company Limited which operated from the site. Under InfraRed NF’s ownership, RedBox has expanded the Gross Floor Area of its portfolio by 116% and is now considered by RedBox management to be the fourth largest self-storage operator in Hong Kong when measured by GFA.

InfraRed NF and RedBox are seeing favourable market dynamics with self-storage one of the fastest growing asset classes in alternative real-estate. Demand is driven by high residential prices, Hong Kong has the highest residential prices in the world with the average resident living in just 160 sq feet of space, combined with rising incomes and an increasingly consumption-driven society. Further, supply is constrained by a shortage of self-storage space – self-storage per capita in Hong Kong is 0.6 sq feet, as compared to other developed markets such as New York (3.4 sq feet), Sydney (1.9 sq feet) and London (1.3 sq feet).

Stuart Jackson, CEO of InfraRed NF, said: “Self-storage in Hong Kong continues to show significant growth potential with smaller residential unit sizes, higher income levels and an increasingly consumption-driven society driving the sector. RedBox Storage is growing rapidly and we look forward to deploying further capital to achieve our goal of making RedBox the market leader in Hong Kong.

Simon Tyrrell, CEO of RedBox, said: “As one of the largest self-storage operators in the market we are proud of the work we do to lead the industry in terms of security and innovation. The support of InfraRed NF has allowed us to expand the portfolio as we continue to deliver bespoke and flexible storage solutions for our customers.” 

Enquiries

Tulchan Communications | +65 6222 3765 | InfraRedNF@tulchangroup.com

About InfraRed NF

InfraRed NF is a Hong Kong-based joint venture between InfraRed Capital Partners and Vervain. Established in 2007, InfraRed NF is a leading investor in the Greater China real estate market with a proven track record of delivering superior returns through a combination of mezzanine financing and value-add investing.

InfraRed Capital Partners is a leading global investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Seoul and Sydney and has launched 18 funds including two listed on the London Stock Exchange. With over 140 professionals, it manages US$12bn of equity in multiple private and listed funds, primarily for institutional investors across the globe.

Vervain (which includes entities operating under the former name of “Nan Fung China”) is a Hong Kong-based private group of companies established in 2004. Vervain has a diversified real estate business, including property investment, property development, project management, real estate private equity investment as well as other financial and mezzanine financing investment. Vervain’s property portfolio comprises high quality residential, commercial, industrial, serviced apartments and hotel properties in Hong Kong, London, New York, Seoul, Tokyo and Vietnam.

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