Self-storage company Public Storage announced it entered a deal to acquire Simply Self Storage from Blackstone Real Estate Income Trust (BREIT) for $2.2 billion.
This portfolio comprises 127 wholly-owned properties and 9 million net rentable square feet that are geographically diversified across 18 states and located in markets with population growth of approximately double the national average since 2018. And about 65% of the properties are located in high-growth Sunbelt markets.
During BREIT’s ownership period, Blackstone has made investments into the Simply platform that enabled the company to enhance the quality of the portfolio and management team and significantly increased Simply’s net operating income.
Public Storage will deploy its industry-leading brand and operating platform to drive customer recognition and enhance performance. And Public Storage will integrate 25 more properties into its PS Advantage third-party management platform.
This acquisition reflects Public Storage’s continued execution of its opportunistic growth strategy. And since 2019, Public Storage has expanded its portfolio by approximately 55 million net rentable square feet, or 34%, through $10.6 billion of acquisitions, development, and redevelopment, including Simply and additional properties previously announced as under contract.
The acquisition is expected to close in the third quarter of 2023, subject to the satisfaction of customary closing conditions.
KEY QUOTES:
“We are pleased to welcome Simply’s team, customers, and third-party management partners to Public Storage’s industry-leading brand and platform. 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.”
— Joe Russell, Public Storage’s Chief Executive Officer
“Where you invest matters, and this transaction demonstrates the strong investor demand for the high-quality assets and platforms we have assembled within BREIT. 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.”
— Nadeem Meghji, Head of Blackstone Real Estate Americas
