National Storage REIT Surges 19% as Brookfield Tables $2.86 Cash Offer

National Storage REIT (ASX: NSR) jumped 19% to $2.70 today after confirming it has received a $4.02 billion takeover proposal from a consortium led by Brookfield Property Group and Singapore sovereign wealth fund GIC. The indicative offer of $2.86 per share in cash represents a significant premium to Tuesday’s close of $2.26 and comes at a time when the stock had been trading at roughly a 7% discount to its net tangible assets.
For investors, this deal signals institutional confidence in Australia’s self-storage sector, a theme reinforced by Abacus Storage King (ASX: ASK) rallying more than 10% in sympathy trading. The question now is whether existing NSR holders should accept or hold out for more and whether Abacus might attract renewed interest of its own.

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What Brookfield and GIC See That Others Missed

National Storage operates more than 280 storage centres across Australia and New Zealand, making it the dominant force in a sector with surprisingly attractive economics. Self-storage offers stable, recurring revenue with minimal tenant turnover risk. Once someone moves their belongings in, they tend to stay for years.
Managing Director Andrew Catsoulis has spent decades building National Storage into a platform with 1.5 million square metres of net lettable area and over 94,500 customers. For the year ending June 2025, the company delivered underlying earnings of $164 million, demonstrating the kind of consistency that institutional capital craves.
Here’s the interesting part. GIC isn’t a stranger to this business. The Singaporean fund already holds a majority stake in a $270 million joint venture with National Storage to develop new centres. That existing relationship means the consortium knows exactly what they’re buying. When insiders come back for the whole company, it usually signals conviction about future value.

The Offer Looks Fair, But Maybe Not Final

NSR’s net tangible assets reached $2.58 per security in FY25, so the $2.86 offer represents about an 11% premium to book value. For a market-leading platform with strong growth prospects, that’s reasonable but hardly a knockout bid. The consortium has exclusive due diligence access until 7 December to decide whether to proceed with a binding offer. Importantly, National Storage has been clear that there’s no certainty that a final deal will emerge.
With shares closing at $2.70, the market is pricing in roughly a 6% gap to the offer. That gap reflects two competing views: either the deal might fall over, or a sweetened bid could be coming. Given the strategic value of this platform and the depth of the consortium’s pockets, the latter seems more likely.

What About Abacus Storage King?

The NSR news sent ripples through the sector. Abacus Storage King (ASX: ASK) jumped more than 10% in early trade as investors wondered whether consolidation might spread.
But chasing Abacus purely on takeover hopes carries risk. Earlier this year, US-listed Public Storage and Ki Corp abandoned their $2.17 billion takeover attempt for Abacus after the two sides couldn’t agree on price. That’s a reminder that M&A speculation doesn’t always pay off.
If you like the Abacus, buy it for its fundamentals. Don’t buy it, hoping someone else will pay a premium.

The Investor’s Takeaway

For NSR holders, the smart move is probably patience. Initial bids for quality assets often get lifted, and Brookfield has the financial firepower to pay more if needed. Selling at $2.70 when the offer sits at $2.86, with potential upside beyond that, seems premature.
For those thinking about buying NSR now, the calculus is trickier. You’re paying close to the offer price with execution risk still on the table. Unless you have a strong view that a higher bid is coming, waiting for deal certainty makes more sense.
The bigger picture here is what this says about Australian self-storage as an asset class. When two of the world’s most sophisticated institutional investors team up for a $4 billion play, it validates the sector’s long-term appeal. Whether NSR shareholders end up accepting this offer or something better, the message is clear: quality storage assets are in demand.