Tags: merger | storage | Extra Space | SmartStop

Extra Space Storage to Buy SmartStop for About $1.4 Billion

Monday, 15 Jun 2015 05:11 PM

Extra Space Storage Inc. agreed to buy SmartStop Self Storage Inc., a California-based nontraded real estate investment trust, for about $1.4 billion.

SmartStop investors will receive $13.75 a share, Extra Space said in a statement Monday. Extra Space will pay $1.29 billion, with the remaining $120 million coming from SmartStop’s sale of a California property and interests in two Alabama and five Toronto locations.

Extra Space, based in Salt Lake City, will own 121 SmartStop locations upon completion of the purchase, expected during the second half of the year, and will assume the property management of 43 third-party sites, all located in the U.S.

“These 164 stores will enhance and complement our physical footprint and digital presence,” Spencer Kirk, chief executive officer of Extra Space, said in the statement.

The $13.75-a-share purchase price is about 27 percent more than SmartStop’s most recently announced net asset value, CEO H. Michael Schwartz said in a separate statement. The Ladera Ranch, California-based REIT, which owns self-storage properties in 21 states and Toronto, is the seventh-largest owner and operator of self-storage facilities in the U.S., according to the statement.

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Extra Space Storage Inc. agreed to buy SmartStop Self Storage Inc., a California-based nontraded real estate investment trust, for about $1.4 billion.
merger, storage, Extra Space, SmartStop
185
2015-11-15
Monday, 15 Jun 2015 05:11 PM
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