Strategic Storage Trust REITs Close $350M Merger Deal
With the purchase now finalized, SST II has added 29 self-storage facilities to its portfolio and obtained the right to acquire one other self-storage facility currently under contract.
LADERA RANCH, CA— Strategic Storage Trust II, Inc. has completed its previously announced acquisition of Strategic Storage Growth Trust, Inc. in a cash and debt deal valued at approximately $350 million.
SSGT stockholders approved the transaction at a special meeting of stockholders held on Jan. 18. The deal provides SSGT stockholders $12.00 per share in cash. The deal includes SSGT debt that was assumed or repaid. Both Strategic Storage Trust II and Strategic Storage Growth Trust are sponsored by SmartStop.
With the purchase now finalized, SST II has added 29 self-storage facilities to its portfolio and obtained the right to acquire one other self-storage facility currently under contract.
SST II states that while it has historically focused on stabilized properties, the SSGT acquisition adds growth properties to SST II’s portfolio, providing SST II with opportunities in the development, redevelopment and lease-up of self-storage properties.
The deal also expands its geographic reach into three new states (Arizona, Massachusetts and Texas) and grows SST II’s existing presence in seven other states and Ontario, Canada.
“We are excited to consolidate SSGT with SST II, creating a company valued at approximately $1.4 billion with revenues that we anticipate will exceed $100 million this year,” says H. Michael Schwartz, CEO and chairman of the board of directors of SST II. “The SSGT portfolio will infuse SST II with a key growth driver, along with adding assets in strategic SST II markets, such as Toronto, Canada, for further economies of scale.”
The SST II portfolio currently consists of 111 operating self-storage facilities located in 17 states and Ontario, Canada, comprising approximately 70,300 self-storage units and approximately 8.1 million net rentable square feet of storage space, and one development property in the Greater Toronto area which will contain approximately 900 self-storage units and 85,000 net rentable square feet of storage space once completed.
SmartStop is a diversified real estate company focused on self storage, student housing and senior housing assets. The company has approximately $1.8 billion of real estate assets under management, including 127 self-storage facilities located throughout the United States and Toronto, Canada, comprised of approximately 80,000 units and 9.4 million rentable square feet. SmartStop’s real estate portfolio also includes five student housing communities with approximately 2,800 beds and 1.1 million square feet of space, as well as four senior housing communities with approximately 650 beds and 500,000 rentable square feet of space.