Self-Storage Growth, Trends and Opportunities in Asia

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2 Self-Storage Growth, Trends and Opportunities in Asia Presented by: Luigi La Tona, Executive Director, Self Storage Association Asia Markus Scherer, Director, Ipsos Business Consulting

3 Asia Self-Storage Industry Overview Presented by: Luigi La Tona Executive Director, Self Storage Association Asia

4 1 Investors Know America Leads Opps Abound Asia Follows The Good, Bad and the Ugly 1? So Far So Good

5 Lead: The American Experience Self-storage industry Started in the 1950s Spread in the 1960s Big growth in the 2000s Approximately 50,000 facilities Approximately $28 billion industry Approximately 8 square feet of self-storage per person Why? Consumerism! National Self Storage Association 1975 industry lobby body Working together to grow the industry The power of ONE unified group acting with ONE voice and ONE purpose.

6 Follow: The Asian Experience Self-storage industry Early 1990s, Japan 1997, Hong Kong 2003, Singapore 2009 and after China, Malaysia, Taiwan, Philippines, Thailand, South Korea, Indonesia Self-storage associations 2003, Rental Storage Association of Japan (RSA) 2010, Japan Self Storage Association (JSSA) 2014, Self Storage Association Asia (SSAA) The power of ONE unified group acting with ONE voice and ONE purpose.

7 So Far So Good Country Population Estimated # of Facilities Estimated Total Rentable Square Feet Square Feet Per Person Hong Kong 7,264, ,500, Singapore 5,353, ,500, Macau 566, , Japan (In and out) 127,368,088 6,720 11,820, Malaysia 29,179, , Philippines 101,182, , China 1,343,239, ,

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9 The Good Why self-storage works in Asia: Growing economies and cities Dense cities with consumer culture No storage space in small apartments Expensive property Approximate population of major cities: Tokyo: 40 million Shanghai: 23 million Seoul: 23 million Jakarta: 18 million Manila: 16 million Hong Kong: 7 million Singapore: 5.5 million So getting to ONE seems simple no?

10 The Bad and the Ugly Challenges Perceived sexiness Think baseball Obstacles Property Space Economies Consumer spending Land supply Competition Stealing market share

11 Opportunities Abound Increase industry awareness and education Market-analyst reports Networking, information sharing and events Follow blue-ocean strategies New end users Don t frustrate, innovate Technology and logistics Work together! The power of ONE unified group acting with ONE voice and ONE purpose This will engage investors, governments and end users. As a matter of fact

12 Investors Know Country: Singapore Buyer StorHub Buyer Type Property Price SGD 91.8MIL Date July 2013 Buyer Buyer Type Price Country: Japan Evergreen Real Estate Partners LLC RE Investment JPY 20 BIL Date September 2013 Buyer Buyer Type Price Country: Hong Kong General Storage Co. (SingPost) Self-Storage Op SGD 12MIL Date July 2014 Source: CBRE Self Storage Report, 2015

13 Investors Know Country: Hong Kong Buyer Blackstone Buyer Type RE Investment Price HKD 420MIL Date March 2015 Buyer Buyer Type Price Country: Singapore General Storage Co. (SingPost) Self-Storage Op SGD 12MIL Date September 2015 Source: CBRE Self Storage Report, 2015

14 In Summary Learn and Follow Investment Results Market Elements

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16 Asia Self-Storage Markets Overview Presented by: Markus Scherer Director, Ipsos Business Consulting

17 Topics of Discussion 1. Greater China overview 2. Hong Kong market 3. Taiwan market 4. Mainland China market

18 Greater China Overview Area Number of self-storage facilities Number of self-storage brands Number of cities with self-storage Total estimated GFA 4.75M SF 62,500 SM (205,052 SF) 158,600 SM (520,341 SF) 107,600 SF Total estimated RFA 3.33M SF 43,750 SM (143,536 SF) 111,020 SM (364,239 SF) 75,320 SF Estimated occupancy rate 89% % Average monthly asking price HKD 47.00/SF (USD 6.06/SF) - - MOP 50.00/SF (USD 6.12/SF) HKD 1 = USD ; MOP 1 = USD Note: RFA is based on an assumption of 60% GFA to RFA conversion

19 In Comparison Rentable Square Feet Per Household Potential demand for an additional 11.7 million SF of self-storage space in Hong Kong USA Texas California New York Australia Hong Kong Source: CBRE Asia Self-Storage Report 2015, content within report from further different sources Note: Hong Kong rentable square feet per household based on Ipsos Business Consulting internal database 2015

20 Topics of Discussion 1. Greater China overview 2. Hong Kong market 3. Taiwan market 4. Mainland China market

21 Hong Kong Market Overview GFA Development Unit: Million square feet YoY 11.8% Number of Players YoY 5.4% YoY 4.4% 4,754 YoY 17.7% ,254 4,

22 GRA and RFA Total rentable floor space was estimated at 3.33 million square feet in Note: RFA is based on an assumption of 60% GFA to RFA conversion. 5.0% 1.5% GFA: ~4.75 million SF RFA: ~3.33 million SF 93.5% Non-climate controlled self-storage Other self-storage Climate controlled self-storage

23 Locker Distribution and Average Price Climate-Controlled Locker Distribution by Type and Average Monthly Asking Price 2015 Square Feet HKD/Month 1,600, ,400, ,200,000 1,000, , , , , Double stacked Small <20 SF Medium SF Large SF Jumbo >61 SF HKD 1 = USD

24 Top 5 Players Brand Number of Facilities Estimated Share of Total GFA SC Storage % Store Friendly % Apple Storage % Hong Kong Storage % Time Mini Storage % Total %

25 Consumer Sentiment Survey Findings Approximately 46% of survey participants are currently using or have used self-storage. 35% 30% 25% 29% 23% 31% 20% 15% 17% 10% 5% 0% I am currently using self-storage or have used it within the past 12 months. I have used selfstorage in the past, but not within the past 12 months. I have never used selfstorage, however, I have considered using it within the past 12 months. I have never used selfstorage; however, I have heard of it and believe I know about the service very/reasonably well. Column1 29% 17% 23% 31% Source: Ipsos Business Consulting, n=500 Hong Kong residents between the ages of 18-49

26 Consumer Sentiment Survey Findings Only 24% of qualified survey participants where able to correctly identify the price. 45% 40% 35% 41% Including any taxes, how much do you think it would cost per month to rent a self-storage unit capable of storing the contents of a two-bedroom flat? 30% 25% 24% 20% 16% 15% 12% 10% 6% 5% 1% 0% 0% Less than HKD 1,500 HKD 1,500-1,999 HKD 2,000-2,499 HKD 2,500-2,999 HKD 3,000-3,499 More than HKD 3,500 Don't know Source: Ipsos Business Consulting, n=500 Hong Kong residents between the ages of HKD 1 = USD

27 Topics of Discussion 1. Greater China overview 2. Hong Kong market 3. Taiwan market 4. Mainland China market

28 Market Overview Geographic Distribution of Estimated GFA by City 2015 Lienchiang Taoyuan Hsinchu Keelung Taipei New Taipei Taipei GFA in Square Meters 38,807 City Population in Millions 2.7 Kinmen Taichung New Taipei Taoyuan 2,975 14, Taichung 2, Penghu Tainan Tainan Kaohsiung Kaohsiung Hsinchu Keelung Total = 62,482 square meters

29 Market Overview Number of Facilities by City 2015 Number of Brands Active by City 2015 Taipei 40 Taipei 12 New Taipei 22 New Taipei 10 Taoyuan 3 Taoyuan 2 Taichung 6 Taichung 3 Tainan 2 Tainan 2 Kaohsing 4 Kaohsing 3 Hsinchu 1 Hsinchu 1 Keelung 1 Keelung 1 Total = 79

30 Price Structure by Locker Type Observed Monthly Asking Rate Price Range and Average Rate 2015 TWD/Month 18,100 19,590 15,000 7, ,000 1,720 2,950 Small 0-5 cbm Medium 5-10 cbm Large cbm Extra large >15 cbm TWD 1 = USD

31 Top 5 Players Brand Number of Facilities Morespace 24 Storeasy Self Storage Storefriendly Mini Storage Easy Storage Taiwan Key Cities Taipei, New Taipei Taipei, New Taipei Taipei, Taichung Taipei, New Taipei Estimated Share of Total GFA 29% 18% 9% 9% EZ-fun Mini Storage 5 Taipei 7% Total %

32 Topics of Discussion 1. Greater China overview 2. Hong Kong market 3. Taiwan market 4. Mainland China market

33 Market Overview Geographic Distribution of Estimated GFA by City 2015 GFA in Square Meters City Population in millions Beijing 64, Shenzhen 44, Beijing Shanghai 30, Shandong, Qingdao Guangzhou 8, Sichuan, Chengdu Shanghai Zhejiang, Hangzhou Hangzhou Chengdu 5,000 2, Hubei, Wuhan Guangdong, Shenzhen, Guangzhou Wuhan Qingdao 1,400 1, Total = 158,676 square meters

34 Market Overview Number of Facilities by City 2015 Number of Brands Active by City 2015 Beijing 43 Beijing 9 Shenzhen 30 Shenzhen 3 Shanghai 23 Shanghai 11 Guangzhou 8 Guangzhou 2 Hangzhou 4 Hangzhou 2 Chengdu 2 Chengdu 2 Wuhan 1 Wuhan 1 Qingdao 1 Qingdao 1 Total = 112

35 Price Structure by Locker Type Observed Monthly Asking Rate Price Range and Average Rate 2015 CNY/Month 10,000 6,750 4,500 2, ,500 1,770 Small 0-15 cbm Medium cbm Large cbm Extra large >45 cbm CNY 1 = USD

36 Top 5 Players Brand Number of Facilities Key Cities Estimated Share of Total GFA Public Self Storage 19 Shanghai, Shenzen 18% Supercheap Storage 12 Beijing 11% Easy Storage 9 Shanghai 8% HOKOKO 9 Shenzen 8% An Ton CC 7 Beijing 7% Total %

37 Contact the Presenters Luigi La Tona Executive Director Self Storage Association Asia Markus Scherer Director Ipsos Business Consulting

38 THANK YOU!

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