SmartStop Self Storage REIT to Merge With Strategic Storage Growth Trust II in $280M Deal
March 1, 2022 | Inside Self-Storage
SmartStop Self Storage REIT Inc. (SSSR), a self-managed real estate investment trust, has agreed to merge with Strategic Storage Growth Trust II Inc. (SSGT II), a private REIT sponsored by an indirect subsidiary SmartStop. Under the agreement, SSSR will acquire SSGT II in a $280 million, all-stock transaction. SSGT II will then merge into a new SmartStop subsidiary with a portfolio comprising 150 wholly owned self-storage facilities comprising about 11.5 million rentable square feet, according to a press release. The merger is expected to close by June 30.
As part of the agreement, SSSR will acquire all of the real estate owned by SSGT II. The portfolio includes 10 wholly owned facilities across seven states, two joint-venture properties in various stages of development, and interest in another site through a joint venture. Combined, the assets comprise 900,000 rentable square feet, the release stated. SSSR will also receive SSGT’s right to purchase a property in Southern California.
“We are excited to announce this transaction and look forward to combining the high-quality assets in the SSGT II portfolio with SmartStop’s existing portfolio,” said H. Michael Schwartz, chairman and CEO of SmartStop. “With this merger, the combined company will be better positioned to recognize expense efficiencies and aggregate size and scale for the future. Since all of the SSGT II portfolio is already branded as SmartStop Self Storage, there will be total continuity of operations throughout the process.”
SSGT II stockholders will receive 0.9118 shares of SSSR common stock for each share of SSGT II common stock they own. Once the deal closes, SSSR stockholders will own approximately 79% of the combined company, while SSGT II shareholders will own about 11 percent. Company management will own the remaining 10 percent, according to the release.
SSSR closed a similar merger last March worth $370 million with Strategic Storage Trust IV Inc., a public non-traded REIT it sponsored.
In addition to SSGT II, SSSR sponsors other private programs through its indirect subsidiary SmartStop REIT Advisors LLC. Its owned and managed self-storage portfolio of 163 properties in 19 states and Toronto comprises approximately 12.6 million net rentable square feet.
Sources:
Business Wire, SmartStop Self Storage REIT Inc. to Acquire Strategic Storage Growth Trust II Inc. Portfolio in $280 Million Transaction
Multi-Housing News, SmartStop, Strategic Storage Merge in $280M Deal
