Self storage group Public Storage has agreed to acquire NYSE-listed peer National Storage Affiliates in a deal with a $10.5bn (€9.3bn) enterprise value.
Public Storage is acquiring National Storage Affiliates in an all-share deal valued at $41.68 per share, offering holders 0.14 of a Public Storage share for every unit they own.
National Storage Affiliates holds a portfolio including more than 1,000 properties, 69m rentable sqft and 550,000 units across 37 US states and Puerto Rico.
Public Storage currently operates a US portfolio of 3,533 facilities covering 258m sqft across 40 states. The company also hold a 35% stake in Shurgard Self Storage, which brings an additional 18m sqft of Western European exposure across 332 facilities.
The combined company is expected to have a pro forma equity market capitalisation of approximately $57bn and total enterprise value of approximately $77bn.
As part of the deal, Public Storage and National Storage Affiliates limited partners will form a $3.3bn joint venture. The joint venture will consist of 313 properties from the National Storage Affiliates platform, representing nearly 20m sqft across 28 states and Puerto Rico.
The operating partnership unitholders are expected to hold 80% of the joint venture at inception, with Public Storage retaining the remaining interest.
Public Storage will continue to be led by incoming CEO Tom Boyle, as well as newly appointed presidents Joe Fisher, Natalia Johnson and Chris Sambar and guided by a board led by non-executive chairman Shankh Mitra.
Boyle said the “transaction will enable us to strategically and accreatively expand our platform with assets that are highly complementary with our portfolio, deepen our significant market presence, and enhance our long-term per share growth profile”.
David Cramer, CEO of National Storage Affiliates, said: “This outcome reflects the incredible transformation we have undertaken over the past few years to refocus our portfolio, enhance operations and drive growth.
“This transaction with Public Storage follows a thorough process overseen by our board of trustees and will deliver a meaningful premium to National Storage Affiliates investors and enable our shareholders and operating partnership unitholders to participate in the significant value creation upside of this combination.
“Public Storage is the ideal strategic fit for our company given their best-in-class brand, operating platform and future growth profile.”
To read the latest IPE Real Assets magazine click here.
