I just saw that Brookfield and GIC are closing a pretty lucrative financing to acquire National Storage REIT in Australia. We’re talking about nearly $1.96 billion in credit to make this deal happen, according to Bloomberg.

What’s interesting here is that it’s not just any ordinary purchase. National Storage is one of the largest storage operators in the country, so this alliance between Brookfield Asset Management and Singapore’s sovereign fund shows a well-thought-out strategic move. Both already have a track record of collaborating on investment projects, but this time they’re going for something bigger in the region.

The storage sector has been gaining traction lately. Demand continues to grow, and self-storage facilities have become more attractive assets for capital managers. Brookfield, as a global alternative asset manager, knows exactly where the opportunities are, and GIC, with its experience in long-term investments, is the perfect partner for this kind of deal.

If the credit is confirmed as expected, the transaction should close without any major surprises. The deal would not only give National Storage access to more capital and operational resources, but it would also strengthen its position in Australia’s real estate market. Analysts will be watching how this develops, because it could set a trend in how major institutional investors are moving in the region’s real estate sector.