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Extra Space Self Storage
Steel Storage Holdings was already operating in Singapore as a self-storage manufacturing and construction company when it decided to expand into self-storage operations themselves. Expanding the self-storage industry in Singapore was one of the reasons behind this decision at the time.
“Self-storage only started in Singapore in 2003 and we were there at the very beginning as a manufacturer and solution provider. In fact, we have been supplying the global market for over 20 years, and having directly experienced the rapid growth in markets like Europe and Australia, we saw the potential for this product in Singapore and the rest of Asia”, says Jon Perrins, Executive Chairman at Steel Storage Holdings. “As we were focused on growing this industry in Asia, people kept asking me ‘so, if it’s such a great business opportunity why aren’t you investing in it yourself?’” He continues, “So we followed our belief and it worked out well, both for the company and the self-storage industry. In 2005, when Extra Space first entered the market, there were five self-storage stores in Singapore. Now – January 2013 – there are 28 stores and it is still very much a profitable growing market!”
On being both a self-storage supplier and operator, he has the following to say: “When we were both an operator and a supplier, prospects were a bit perplexed by our supplier/operator model, but in a growth market, raising awareness of the product is more important than competition. Growing the self-storage market was our principal aim and when the market could be considered well-established, it was time for us to exit and leave it to the current and future operators.”
He adds: “Although our holding period in Extra Space was relatively short, we are thrilled to have experienced a successful outcome proving the success of the business in Asia. What was even more thrilling to see was the significant number of parties interested to invest in this business as experienced with the Extra Space sale. This is a strong signal for investors that there are ample opportunities for current and future exits in the Asian self-storage sector."
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