Hersing, global property fund ink storage MOU

August 22, 2008
Hersing, global property fund ink storage MOU
It plans to expand self-storage business in region and S'pore

HERSING Corporation said yesterday that it has signed a non-binding
memorandum of understanding with a leading global real estate fund
for a proposed joint venture relating to Hersing's self-storage
business.

Hersing, through wholly owned subsidiary Storhub Self Storage,
manages and operates self-storage centres in five locations across
Singapore.

The company intends to expand the business throughout the island and
into regional countries.

'The proposed joint venture will allow the company to leverage on the
financial expertise, network and other resources of the real estate
fund for this intended expansion,' Hersing said in a statement.

It did not name the real estate fund.

Under the terms of the MOU, Storhub will transfer four properties -
25A Changi South Street 1, 743 Lorong 5 Toa Payoh, 615 Lorong 4 Toa
Payoh, and 15 Changi South Street 1 - to four Singapore-incorporated
asset-holding companies, which in turn will be beneficially owned by
an entity 80 per cent held by the global real estate fund and 20 per
cent by Hersing.

The real estate fund will also buy from Hersing a 20 per cent stake
in a company that will be set up to provide property management and
asset management services for the asset-holding companies.

Hersing said the deal will allow it to realise capital gains that
will enhance shareholder value.