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Friday, Jun 21, 2024

Public Storage Closes $2.2B Deal

Glendale-based Public Storage Inc., one of the largest operators of self-storage centers in the U.S., officially expanded its market share as it finalized its acquisition of Simply Self Storage from Blackstone Real Estate Income Trust Inc. for $2.2 billion. 

The acquisition encompasses 127 properties spread across 18 states, adding about 9 million square feet to Public Storage’s portfolio. These properties are located mainly in the Sun Belt, a region of the United States that continues to dominate market growth rankings as the country eases out of the pandemic.

“We are pleased to welcome Simply’s team, customers and third-party management partners to Public Storage’s industry-leading brand and platform,” said Joe Russell, Public Storage’s chief executive. 

This move aligns with Public Storage’s pattern of aggressive expansion through acquisitions and development. Since Russell took the helm in 2019, the company has significantly increased its real estate holdings by around 55 million net rentable square feet through $10.6 billion of investments in acquisitions, development and redevelopment. 

Notable past acquisitions include the purchase of Texas-based All Storage for $1.5 billion and ezStorage for $1.8 billion, both described by Public Storage as “high-quality” self-storage portfolios. 

Earlier this year, Public Storage lost out on its hostile acquisition bid of Life Storage after the company took its $11 billion offer public in February. Ultimately, its rival Extra Space Storage Inc. won the bid in a $12.7 billion acquisition, making the deal’s victor the largest self-storage company in the United States by square footage under management.

Blackstone benefitted greatly from the sale, realizing $600 million in profit 

James Brock
James Brock
James Brock has worked in newsrooms around the world, including in New York, Paris, Abu Dhabi, Dubai, Houston, and Los Angeles. He began his career with a Newhouse News daily, where he served on the news desk and the editorial page. He was the copy chief for The New York Sun, and founded and edited the personal finance section for Abu Dhabi-based The National, among other positions. He has interviewed Anthony Bourdain, Tom Ford, Mark Cuban, and many other individuals, and has written and edited thousands of stories and articles.

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