Glendale, California-based Public Storage (NYSE:PSA) is acquiring rival Simply Self Storage for $2.2 billion from Blackstone Real Estate Income Trust Inc. (BREIT), a subsidiary of Blackstone (NYSE:BX).
The Simply portfolio includes 127 wholly-owned properties and 9 million net rentable square feet across 18 states – with approximately 65% of the properties in Sunbelt markets. As of the end of the first quarter, Public Storage had interests in 2,877 self-storage facilities located in 40 states with approximately 205 million net rentable square feet; the company also has a a 35% common equity interest in Shurgard Self Storage Ltd. which owns 266 self-storage facilities in seven Western European nations with approximately 15 million net rentable square feet.
“We are pleased to welcome Simply’s team, customers, and third-party management partners to Public Storage’s industry-leading brand and platform,” said Joe Russell, Public Storage’s Chief CEO. “This acquisition reflects the continued execution of our multi-factor external growth platform, which includes acquisitions, development, redevelopment, expansion, and third-party management. We are pleased to complete this important transaction with Blackstone, which further demonstrates our position as an acquirer of choice in the industry. Blackstone has done a tremendous job of growing and improving the quality and operations of the Simply portfolio over the past few years.”
“Where you invest matters, and this transaction demonstrates the strong investor demand for the high-quality assets and platforms we have assembled within BREIT,” said Nadeem Meghji, head of Blackstone Real Estate Americas. “This sale is a terrific outcome for BREIT stockholders and enables us to further concentrate BREIT’s portfolio in its highest growth sectors. Public Storage is a leader in its space and will be a terrific steward of this portfolio.”
