Projects - Asset Restructuring

Spare Room Holding Pty Limited

Management and restructure


  • Storage facility
  • St Leonards, NSW
  • Administrator for financier
  • Senior debt ($40m)


  • Overcapitalised facility, too large (at 52,000 m2) for catchment. Market demand was only around 32,000sqm resulting in substantial vacancies
  • Managers/owners had limited experience managing storage facilities (this was the only facility operated)
  • Complicated management agreement
  • Industry participants reluctant to purchase facility that was managed by a competitor
  • Investors reluctant to purchase a purpose-built asset


  • Set up a new entity and assigned customer contracts/plant and equipment which effectively replaced Spare Room as business owner
  • Salvaged customer and supplier arrangements
  • Terminated Spare Room’s contract and entered into new contract with National Storage (an experienced ASX-listed operator) as replacement manager of business
  • Negotiated put and call option with National Storage to exit asset


  • Business was sold to National Storage for $36.5m (above valuation)
  • Provided exit for the financier within 12 months

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