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Sign up here to receive our newsletter. People often complain about Hong Kong’s notoriously tiny apartments, but for investors like Blackstone Group LP , opportunity can be found in small places. The majority of Hong Kong’s 7.4 million residents live in cramped homes with limited space for clothes, shoes, books, sports gear and other items. So there’s a desire to find somewhere else to store non-essential belongings. “People don’t want to give up their stuff, things that they have an emotional attachment to,” said Ralph Myers, a 38-year-old who started using a storage unit six months ago. The theater set and costume designer pays HK$250 ($32) a month for the space, which is packed with his own furniture. “Apartments in Hong Kong are so small there’s not that much difference between my storage unit and my place,” Myers said in an interview. “Essentially my storage unit looks like a furnished apartment itself -- bed, chairs, table and so on -- just without a kitchen or a bathroom.” Read more: Prison-Cell Flats Show Limits of chiropractic council Home-Supply Policy Chris Heady, chairman of Asia Pacific and head of Asia real estate at Blackstone, described the sector as “interesting” at a panel discussion at the Wharton Global Forum in Hong Kong last month. “It’s not a glamorous business necessarily, but a good business.” Blackstone invested a reported HK$420 million in MiniCo Self-Storage in March 2015. The company is now called Minibox Self Storage. Self-storage supply in Hong Kong in 2015 was 0.44 square feet per person -- way behind the U.S. figure of 7.8 sq. ft., according to a report by CBRE Group Inc. At the end of that year there was a shortfall of about 200,000 sq. ft.
For the original version including any supplementary images or video, visit https://www.bloomberg.com/news/articles/2017-07-11/tiny-hong-kong-homes-offer-big-opportunity-for-storage-providers