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SALT LAKE CITY-Extra Space Storage Inc. is selling 6.2 million shares of its common stock this week for $13.47 per share in a private placement with institutional investors. The $81.4 million in net proceeds will be used to partially fund its $2.3-billion joint venture acquisition of Storage USA from GE Commercial Finance. Its joint venture partners are four open-end commingled funds and two single client accounts of Prudential Real Estate Investors. Locally headquartered Extra Space Storage is a REIT that owns and operates 148 self-storage properties in 20 states. Memphis, TN-based Storage USA is a self-storage company with more than 450 properties in 30 states and the District of Columbia. The acquisition, expected to close in the third quarter, will make Extra Space Storage the second largest self-storage operator in the U.S. with over 600 properties owned or under management.Prudential funds and clients have committed about $1.5 billion in equity to the transaction. Upon completion of the transaction, Extra Space Storage will 100% of 61 Storage USA facilities, and through the PREI joint venture, will have an ownership interest in an additional 259 Storage USA properties. Extra Space also will acquire Storage USA’s equity interest in 54 joint venture properties and assume the management of an additional 84 franchise and managed properties.GE acquired Storage USA in 2002 when it bought Security Capital Group Inc. for around $4 billion in cash and stock and assumed $1.4 billion in debt in the deal.

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