Public Storage (PSA), a real estate investment trust (REIT), has recently announced plans to acquire 30 self-storage facilities spanning across 1.9 million square feet of space for $189 million, including debt assumption of approximately $126 million.
About 28 of the 30 facilities (1.8 million square feet) are located in the Los Angeles area and the adjacent Southern California market. With the acquisition, the company intends to strengthen its position in these markets, increasing its market presence by as much as 20%.
The remaining two properties are located in Chicago. The deal is expected to be completed in the second half of the year. As of Jan 31, 2010, the properties had 80% occupancy on an average.
The ‘Public Storage’ brand is the most recognized and established name in the self-storage industry with a presence in all the major markets across 38 states in the U.S. As of Dec 31, 2009, the company had interests in 2,010 storage facilities in the U.S. spanning 127 million square feet of rentable space,
and 188 storage facitlites in Europe with nearly 10 million square feet of rentable space. Along with its storage operations, the company has a 41% ownership in PS Business Parks (PSB), a REIT that has commercial properties with approximately 19.8 million square feet of space. In addition, Public Storage offers commercial and container storage services through Public Storage Pickup and Delivery, Inc., where containers are delivered to customers for packing and subsequently picked up for storage at the company’s central facility. The company also markets various items relating to self-storage facilities, provides trucks on rent, and derives tenant reinsurance premiums through its investment in PS Insurance Company.
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