APG Asset Management N.V. and CapitaLand Investment Limited have entered into a joint venture to establish an Asia-focused self-storage platform. APG and CLI have committed an initial equity investment of SGD 570 million with an option to increase their investment up to SGD 1.14 billion, in the proportion of 90:10, to fund the acquisition of Extra Space Asia (ESA) and its expansion needs. Post acquisition, the company will be re- positioned into an operating company/property company structure to facilitate future expansion.

ESA was founded in 2007 with two facilities and has since grown into one of the region's largest self-storage businesses with about 70 owned and leased facilities across six Asian gateway cities ­ Hong Kong, Kuala Lumpur, Seoul, Singapore, Taipei and Tokyo ­ with more than 70% of its net property income being generated in Singapore. The portfolio comprises more than 1 million square feet of net lettable area with an occupancy of over 90%. The acquisition of ESA comes with an experienced management team holding a proven track record in sourcing and managing quality self-storage facilities.

The self-storage industry in Asia is supported by strong fundamentals such as high urbanization rates, high population density, an increasing proportion of renters and an explosive growth of ecommerce. With much lower penetration rates compared to the more mature self-storage markets in the USA and Europe, there is a long growth runway for self- storage platforms in Asia. APG and CLI were attracted by the sector's strong fundamentals, growth potential and belief that the fragmented nature of the sector in Asia presents opportunities for consolidation.

The acquisition of the ESA portfolio will allow APG and CLI to achieve immediate scale across key Asian gateway cities with strong presence and brand recognition. The platform has also been allocated capital for expansion and will benefit from CLI's global ecosystem of assets, customers and digital platforms to expand and grow the business.