Public Storage to acquire rival self-storage company Simply Self Storage
Public Storage (NYSE:PSA) is set to acquire rival American self-storage company Simply Self Storage from Blackstone Real Estate Income Trust, Inc. (BREIT) in a deal worth $2.2 billion.
The portfolio includes 127 wholly-owned properties spanning nine million net rentable square feet, spread across 18 states experiencing population growth double the national average since 2018. High-growth Sunbelt markets account for 65% of the portfolio’s locations.
During its ownership, Blackstone Real Estate Income Trust invested in Simply Self Storage’s platform, thereby enhancing the quality of the portfolio and management team, and consequently increasing the net operating income.
With this acquisition, Public Storage plans to deploy its industry-leading brand and operating platform to boost customer recognition and performance. It also intends to integrate 25 more properties into its PS Advantage third-party management platform, thereby strengthening its presence in rapidly-growing markets and offering additional growth and value-creation opportunities.
This acquisition of Simply Self Storage aligns with Public Storage’s ongoing opportunistic growth strategy. The company has broadened its portfolio by approximately 55 million net rentable square feet, or 34%, through acquisitions, development, and redevelopment totaling $10.6 billion since 2019, including Simply Self Storage and other properties previously announced as under contract.
Public Storage’s CEO, Joe Russell, expressed his satisfaction over the acquisition and commended Blackstone Real Estate Income Trust’s efforts in enhancing Simply Self Storage’s portfolio. Similarly, Nadeem Meghji, Head of Blackstone Real Estate Americas, praised the deal as beneficial for Blackstone Real Estate Income Trust’s stockholders, and commended Public Storage as a leader in the industry and a capable steward of the portfolio.
The acquisition is projected to close in the third quarter of 2023, pending the fulfilment of standard closing conditions.