InfraRed NF, a Hong Kong–based real estate investment fund, has paid $50 million for a 90 percent stake in Hong Kong self-storage provider RedBox Storage.
“Ownership of their properties provides an attractive real estate investment opportunity in a market where demand for self-storage is high and supply is constrained by the government revitalization program and regulations following the 2016 fire in Ngau Tau Kok,” said Stuart Jackson, CEO of InfraRed NF.
Real estate investment manager E3 Capital Partners found RedBox in 2014.
InfraRed NF also invested $28 million in China Mini Storage last year. InfraRed NF is a joint venture between InfraRed Capital Partners and Vervain Resources, an investment affiliate of Hong Kong property developer Nan Fung Group. InfraRed NF focuses on private equity investments in the Greater China real estate market.
InfraRed Capital Partners has more than $25 billion invested in development projects.
Commercial property investors are increasingly turning to alternative real estate in Asia Pacific due to the broad demographic shifts such as urbanization, an aging population, as well as the region’s rising household wealth and increasing use of technology, according to JLL. In Hong Kong, record high prices and ultra-low property yields are driving an increasing number of investors to take a closer look at alternatives in the local real estate market. These include student housing, senior housing, co-living, education, self-storage, car parks and data centers.
