ABG to Acquire 100% of ASK Responsible Entity by June 2026

Strategic Shift as ABG Takes Full Control of ASK Management

Abacus Group (ASX:ABG) is executing a decisive pivot in its relationship with Abacus Storage King (ASK), moving to internalise ASK’s management by acquiring 100% of the shares in ASK’s responsible entity, Abacus Storage Funds Management Limited (ASFML). The $24 million deal, comprising a headline price of $19 million plus approximately $5 million for net assets, is scheduled to complete by 30 June 2026.

Since 2018, ABG has overseen ASK’s growth from a modest $0.7 billion self-storage portfolio to a $3.5 billion entity, accelerated by the 2020 acquisition of the Storage King platform and ASK’s 2023 ASX listing as Australia’s sole pure-play self-storage REIT. ABG’s Managing Director Steven Sewell highlighted the timing as appropriate given ASK’s scale and brand recognition across Australia and New Zealand.

ASK’s internalisation means ABG will no longer collect investment and development management fees from ASK, which were forecast to total around $19.6 million in FY26. However, this revenue loss is partially offset by an expected $8.4 million annualised cost saving, primarily from staff transitioning to ASK under new employment agreements. ABG plans to use the net proceeds from the transaction to repay debt, potentially strengthening its balance sheet.

Leadership and Operational Changes Post-Internalisation

The transaction involves significant leadership adjustments. Steven Sewell will step down as Managing Director of ASK upon completion, while continuing as ABG’s Managing Director. Nikki Lawson will assume the CEO and Managing Director roles at ASK, joining its board immediately after implementation. ABG’s Chief Investment Officer Gavin Lechem remains in his current role, and a recruitment process is underway to appoint a new CFO for ABG, as current CFO Evan Goodridge transitions to ASK in September 2026.

ASK-focused ABG employees will be offered new contracts with ASK, and both entities have agreed to provide transitional services for up to nine months post-completion, ensuring operational continuity. Notably, the Abacus brand and logo will be removed from the Storage King business following the internalisation, marking a clear separation of identities.

Governance and Financial Implications

The internalisation was overseen by an Independent Board Committee of ABG’s independent directors, supported by Morgan Stanley Australia Limited and Allens as advisers. The committee confirmed the transaction is on arm’s length terms, exempting it from securityholder approval under Corporations Act Chapter 2E and ASX Listing Rules.

Financially, ABG reaffirms its FY26 distribution guidance of 8.50 cents per security, maintaining confidence despite the shift in revenue streams. The group’s focus post-internalisation will be on identifying and managing high-quality commercial real estate investments, with an eye on optimising its portfolio and capital structure to unlock future growth opportunities.

This move follows ABG’s earlier indications of management restructuring at ASK, including the formation of an independent committee and advisory appointments earlier this year, reflecting a carefully managed transition process. The internalisation complements ABG’s recent management shift at Storage King and builds on preliminary discussions reported in February 2026 that set the groundwork for this transaction internalise Abacus Storage King's management.