Troon buys major self storage facility to seed fund
EXCLUSIVE
Troon Group will seed a self storage fund with a major Melbourne asset.
The local group, also a builder with a manufacturing headquarters (H Troon) in Ballarat, is paying $10 million for the fully functioning facility, 91 Remington Drive, Dandenong South, following a deal agreed late last year.
With 215 units between 8.6-46.2 square metres – all up, 3609 sqm – improvements cover less than a third of the 1.15 hectare block.
Southern Self Storage was the former occupier.
The acquisition comes 18 months since we reported Troon with MaxCap outlaid $26.3m for a 10.5ha ex-tip at Clayton South, about 15 kilometres from Dandenong South.
A business park with nine buildings containing 60,000 sqm, with an end value circling $200m, was recently permitted there.
Troon to establish business, portfolio
Via the proposed fund, Troon intends to venture into the self storage business while also holding product (story continues below).
It would enter a competitive sector, with established brands including Storage King and Kennards continuing to boost their portfolios – the latter recently with an Abbotsford site to expand a facility.
Singapore based Warburg Pincus-backed StorHub has also been active buyer of Melbourne self storage assets since last year.
One, in Braeside, about 12km from Dandenong South, set it back $8.2m last July.
Local investor Carl Sachs also made a major play in this sector, in mid-2023, acquiring the ex-Kodak headquarters, again in Abbotsford, to extend then occupy with an asset of this type.
Colliers’ Luke Lowden, Gordon Code and Sam Hibbins marketed 91 Remington Dve.
Dandenong South is about 31 kilometres south east of Melbourne’s CBD.
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