Singapore sovereign wealth fund GIC, Cascade Investment and other investors have taken stakes in StorageMart, the US-based self-storage company said in a statement Tuesday.
The transaction values StorageMart, which says it is the largest privately owned self-storage company globally, at $2.7 billion, the statement said.
The company, with locations in the US, UK and Canada, is majority owned by Stanley Kroenke and the Burnam Family, which founded StorageMart, the statement said. StorageMart owns, operates and develops self-storage properties, it added. It has around 225 properties across the three countries.
“The self-storage sector is rapidly evolving, and companies that can deploy technology, enhanced operations, and a truly memorable customer experience are going to outperform,” Cris Burnam, CEO of StorageMart, said in the statement.
“To do this, scale is a fundamental requirement. By combining the forces of Mr. Kroenke and our new partners GIC and Cascade Investment, StorageMart will be in an unrivaled position to achieve its growth strategies in both current and new markets,” Burnam added.
Citigroup was the exclusive financial advisor to StorageMart on the deal, while Kirkland & Ellis provided legal counsel, the statement said.
Within the US, the self-storage sector has faced some damage from the COVID-19 pandemic.
A report from real estate service provider JLL showed revenue in the second quarter of this year fell 2.7 per cent on-year, while expenses rose 3.4 per cent and net operating income declined 5.2 per cent. The report cited data from US self-storage REITs.
But the report pointed to some figures that suggest the full picture isn’t visible yet, noting the Extra Space Storage REIT reported its same-store occupancy at end-July was 95.7 per cent, up from 94.2 per cent a year earlier, but that occupancy may have been inflated by 200 basis points as the pandemic delayed auctions of delinquent units.