Nuveen to take self-storage firm private and plans European expansion

Nuveen Real estate is acquiring a second self-storage operator in Sweden in less than a month, as it plans to expand into the sector across Europe.

The €117bn real estate investment manager is paying SEK2.1bn (€203m) to buy 24Storage and will merge it with Green Storage, which it acquired in November for an undisclosed amount.

The NASDAQ-listed real estate investment trust (REIT) and second largest self-storage operator in Sweden will be taken private.

Nuveen has acquired more than 92% of 24Storage via unconditional share purchase agreements and launched a mandatory public tender offer to acquire the remaining shares.

The acquisition is based on a share price of SEK76 per share, equating to an enterprise value of approximately SEK2.1BN. Nuveen outbid Shurgard Self Storage, which had offered SEK72bn per share – itself a counter bid to Nuveen’s initial offer of SEK62bn.

24Storage owns 26 operational assets and four developments in Sweden’s three major cities of Stockholm, Gothenburg and Malmö, comprising approximately 12,000 individual units.

This transaction follows the recent acquisition of Green Storage platform last month, which operates 14 assets.

Nuveen said the acquisitions enabled it to build a market-leading platform in what it has identified as “one of the most attractive sub-sectors given the significant under-supply of modern space”.

Jasper Gilbey, head of TIAA general account and alternatives in Europe at Nuveen, said: “We are delighted to be acquiring 24Storage – the second largest self-storage operator in the Swedish market.

“The company has successfully built up a high-quality real estate portfolio in Sweden’s top three cities and we fully subscribe to their strong focus on technology and sustainability to drive operational efficiencies and provide a future-proofed storage solution.

“The privatisation of a high profile listed company reinforces Nuveen’s ability to access interesting investment opportunities in both the public and private markets while also demonstrating our commitment to grow our self-storage footprint across Europe.

“The combined portfolio with Green Storage will create a market-leading platform in Sweden with significant synergies and exciting growth potential in the coming years.”