KUALA LUMPUR: StorHub Malachite 1 Sdn Bhd (StorHub Self Storage Malaysia) is eyeing strategic property acquisitions across key regions like the Klang Valley, Penang, and Johor within the next two years.
The company's expansion strategy focuses on acquiring six to eight owner-occupied properties, with a strong emphasis on diversification through strata and en bloc properties.
Chief executive officer Desmond How sees Malaysia as an important market due to familiar growth patterns witnessed in StorHub's other locations in Singapore, China, Hong Kong, South Korea, Japan, Thailand and Australia.
"The catalyst for this expansion includes urbanisation, economic progress, and the burgeoning e-commerce sector. Many e-entrepreneurs now rely on self-storage for 24/7 access to their inventory.
"Additionally, the trend of Malaysians returning from overseas studies has spurred greater awareness and adoption of self-storage services in the country, further fueling growth expectations beyond 2023," he told Business Times.
The growth trend aligns with a recent independent market research report projecting the global self-storage market to reach US$149.8 billion by 2030, with a solid compound annual growth rate (CAGR) of 6.8 per cent from 2022 to 2030.
In August, StorHub Group, Singapore's premier self-storage operator, acquired a majority stake in Malaysia's leading player, Flexi Storage Sdn Bhd.
The acquisition marked the rebranding of all Flexi Storage facilities to StorHub Self Storage Malaysia, consolidating the group's regional presence.
Currently, StorHub Group operates 18 facilities in Singapore and has a strong footprint across 15 cities, including Australia, China, Hong Kong, Japan, South Korea, Thailand, and now Malaysia.
With over 5.1 million sq ft of gross floor area (GFA) and 70,000 self-storage units, StorHub Group is a major player in the industry.
Further enhancing its local presence, StorHub Self Storage Malaysia chief operating officer Alex Lee said it has plans to open a new facility on the Kuala Lumpur and Selangor border following the acquisition of a strata property in Old Klang Road.
This marks the company's fourth location in Malaysia, strategically positioned to serve communities in Taman OUG, Taman Kinrara, Taman Damai Utama, Bandar Baru Sri Petaling, Mid Valley City and beyond.
Notably, this is the first StorHub facility in Malaysia located within a residential building, offering over 1,000 self-storage units spanning 85,000 sq ft of GFA to meet the diverse storage needs of nearby communities.
While expanding into this new market, one challenge StorHub anticipates is the relatively low consumer awareness of self-storage in Malaysia.
"To address this, StorHub Malaysia plan to actively market their facilities and acknowledge the need for more providers in the country, as fewer than ten currently exist," he said.
As StorHub Malaysia continues to brings its regional expertise to this growing market, Lee also emphasised StorHub Malaysia's commitment to elevating industry standards in Malaysia, with a particular focus on environmental, social, and governance.