Nuveen Real Estate is buying Scandinavian self-storage provider Self Storage Group (SSG) for NOK3.79bn (€330m), in a deal that will accelerate its expansion plans into the sector across Europe.
T-C Storage, a holding company owned by Nuveen’s parent Teachers Insurance and Annuity Association (TIAA), is offering to buy Oslo-listed SSG’s shares at NOK40 each, a price that represents a 66.7% premium to the shares’ last closing price.
SSG’s board of directors unanimously recommended the offer. Also, SSG’s largest shareholders including Centerbridge Partners affiliate company Alta Lux, Fabian Holding, GSS Invest, and First Risk Capital have agreed to accept the deal, which is subject to certain conditions.
SSG operates 32,600 storage rooms in 142 facilities located in Sweden, Norway and Denmark under the City Self Storage and OK Minilager brands.
TIAA, which has invested in the self-storage sector in the US for over 20 years, made its first European investment in 2021 by acquiring the Green Storage and 24Storage platforms in Sweden.
Nuveen said that its focus over the last 18 months has been to consolidate the two Swedish platforms under the Green Storage brand and grow through small acquisitions.
The acquisition of SSG helps to ”accelerate the business plan of creating a leading pan-Nordic storage platform”, Nuveen said, adding that with the combined platform and management expertise, TIAA can grow further.
Mario Pello, the head of TIAA general account in Europe at Nuveen Real Estate, said: “TIAA is a major owner of self-storage in the US and Europe, having invested in the sector for more than 20 years. In Europe, we have been actively monitoring the growth journey of the company for a long period of time given the high quality of the portfolio, the company’s dominant positioning in the Norwegian market and strong synergies with our existing Swedish platform.
“Through the acquisition of the company, we will create a unique pan-Nordic platform with market-leading positions in Norway and Sweden – two of our high conviction markets – with scope to expand further into Denmark.”
Fabian Søbak, SSG’s CEO, said: “Having co-founded OK Minilager in 2009, having identified a unique market opportunity for self-storage in the Nordics, I am extremely proud of the company’s and the team’s achievements. Through acquisitions such as City-Self Storage, Eurobox, Dit Pulterkammer and numerous asset transactions, as well as organic growth focus, we have together built a leading pan-Scandinavian self-storage company.
“Well supported by Centerbridge, we successfully leveraged our market-leading position in Norway to accelerate growth across Scandinavia. I am confident that Nuveen and their Green Storage platform will be a good new owner for the company, and also provide an exciting opportunity for the great SSG team.”
Steven Skaar, chairman of the board of SSG, said: “The board believes the terms of the offer are in the best interests of Self Storage Group and our shareholders, and also benefitting our employees, customers and partners. The Board recommends the offer as it represents a fair valuation of the company.”
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