SINGAPORE -- National postal service provider Singapore Post (SingPost) announced on Thursday its entry into Hong Kong's self-storage market with an agreement to acquire The Store House in totality for a considered cash sum of up to 75 million Hong Kong dollars ($9.9 million).
SingPost already provides self-storage services in Singapore. Following the China acquisition, which is due for completion by September's end, SingPost hopes to "capture self-storage opportunities in the (Hong Kong) region", according to an announcement on Thursday.
The Store House was established in 1999 and has developed into one of the leading self-storage operators in Hong Kong where office and residential spaces are in high demand and expensive. It operates in four locations and its services include late-night access. The company's net asset value was HK$11 million at the end of February.
A SingPost spokesperson said Hong Kong presents an attractive expansion opportunity for SingPost's self-storage business because of its "high population density and rising affluence" combined with the storage business's relatively low penetration there compared to other developed markets.
SingPost is bullish on business expansion in China. In May, it announced a strategic partnership with Alibaba Group Holding, China's e-commerce giant. The two companies signed an memorandum of understanding for an international e-commerce logistics joint venture targetting "Southeast Asia and beyond". SingPost dates back 150 years and its services include interational logistics capabilities and delivery networks.