Public Storage Agrees to Acquire Simply Self Storage from Blackstone for $2.2B

by Taylor Williams

GLENDALE, CALIF. AND NEW YORK CITY — Self-storage REIT Public Storage (NYSE: PSA) has agreed to acquire Simply Self Storage from New York City-based Blackstone Real Estate Income Trust Inc. (BREIT) for $2.2 billion. The deal is scheduled to close during the third quarter.

Simply Self Storage is an owner-operator that was founded in Orlando in 2003. The company owns 127 facilities and operates 25 more on a third-party basis for a total of more than 11 million net rentable square feet across 18 states. Roughly 65 percent of Simply Self Storage’s portfolio, which has a collective occupancy rate of 91 percent, is concentrated in Sun Belt markets.

“This acquisition reflects the continued execution of our multi-factor external growth platform, which includes acquisitions, development, redevelopment, expansion and third-party management,” says Joe Russell, CEO of Public Storage. “We are pleased to complete this transaction with Blackstone, which has done a tremendous job of growing and improving the quality and operations of the Simply portfolio over the past few years.”

“Where you invest matters, and this transaction demonstrates the strong investor demand for the high-quality assets and platforms we have assembled within BREIT,” adds Nadeem Meghji, head of Blackstone Real Estate Americas. “This sale enables us to further concentrate BREIT’s portfolio in its highest growth sectors.”

Since 2019, Public Storage has expanded its portfolio by approximately 55 million net rentable square feet through $10.6 billion of acquisitions, development and redevelopment. Following the close of this deal, Public Storage’s portfolio will comprise 3,222 properties (3,004 owned and 218 operated on a third-party basis) totaling more than 214 million net rentable square feet of space.

Eastdil Secured served as financial advisor to Public Storage, and Wachtell, Lipton, Rosen & Katz, along with Hogan Lovells US LLP acted as the California-based REIT’s legal advisors. Wells Fargo and Newmark Group Inc. served as lead financial advisors to BREIT, and BMO Capital Markets and Sumitomo Mitsui Banking Corp. (SMBC) also acted in this capacity on behalf of BREIT. Simpson Thacher & Bartlett LLP acted as BREIT’s legal advisor.

Public Storage’s stock price opened at $293.40 per share this morning, down from $323.92 one year ago.

— Taylor Williams

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