Following the finalization of the Extra Space and Life Storage recent merger last week, another deal was getting done but flying a bit more under the radar. Today, Public Storage and Blackstone Real Estate Income Trust Inc. (BREIT) have just announced an agreement in which Public Storage will acquire Simply Self Storage (Simply) from BREIT for $2.2 billion.
The Simply portfolio consists of 127 wholly-owned properties and 9-million net rentable square feet within markets where population growth has been about double the national average since 2018 (an estimated 65% of the properties are located in high-growth Sunbelt markets).
During BREIT’s ownership period, Blackstone made investments into the Simply platform that enabled the company to enhance the quality of the portfolio and management team, and ultimately significantly increased Simply’s net operating income. Public Storage expects to further awareness and performance of Simply through its brand and operating platform, and will integrate an additional 25 properties into its PS Advantage® third-party management platform.
“This acquisition reflects the continued execution of our multi-factor external growth platform, which includes acquisitions, development, redevelopment, expansion, and third-party management,” said Joe Russell, Public Storage’s Chief Executive Officer, in a pbress release.
Nadeem Meghji, Head of Blackstone Real Estate Americas, added, “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.”
The acquisition is expected to close in Q3 of this year following satisfaction of customary closing conditions.
