National Storage REIT (ASX:NSR) entered into binding agreements with GIC for the National Storage Ventures Fund to invest in a second tranche of development assets, according to a Wednesday Australian bourse filing.

The company and GIC plan to invest about AU$228 million in total capital to acquire, develop, and operate six additional assets from the company's existing development portfolio.

Completion of the tranche 2 acquisition depends on finalizing key agreements, including business and property sale agreements, securing regulatory approvals, and arranging external financing.

Settlement is expected around mid-June, unless agreed otherwise.

The acquisition is projected to generate about AU$140 million in net sale proceeds for the company, which will be used to reduce debt, and after the deal, NSR and GIC will continue to hold around 25% and 75% equity interests in the Fund, respectively.

The real estate investment trust's shares were down almost 1% in recent Wednesday trade.