AS PART of its strategy to grow its self-storage business, postal service provider Singapore Post (SingPost) is acquiring General Storage Company from Asia Pacific Storage Company for $37 million.
General Storage, which operates a self-storage business under the Lock+Store brand, has facilities in Tanjong Pagar and Chai Chee.
The acquisition will expand SingPost's existing self-storage business, Self Storage Solutions (S3), which offers warehousing, fulfilment, delivery and distribution services. SingPost expects the acquisition to allow it to serve individual customers and small-and-medium enterprises better.
"This acquisition is part of SingPost's transformation initiatives, enabling us to further expand our self-storage business S3, with an experienced and leading operator in this industry. As an extension of our business, self-storage solutions offer synergies with our existing business in logistics and e-commerce," said group CEO Wolfgang Baier. "We expect to further integrate the self-storage business into our core business by adding delivery and other value-added services to storage solutions. This strengthened expertise in self-storage solutions can also potentially benefit our regional partnerships."
In its filing to the Singapore Exchange yesterday, SingPost said that the $37 million will be wholly satisfied in cash and funded from its internal resources.
"The self-storage business is an attractive usage option for the industrial-zoned space of our properties. This acquisition is strategic, paving the way for SingPost to extract greater value from our existing properties," said group chief financial officer Ng Hin Lee.