The SSGT portfolio includes 27 self-storage facilities in Canada and the United States
March 30, 2019: Strategic Storage Growth Trust Inc. (SSGT) and Strategic Storage Trust II Inc. (SST II), have agreed to merge. Under the agreement, SST II will acquire SSGT for $340 million, with SSGT stockholders receiving $12 per share in cash. Both the companies are public, non-traded, self-storage real estate investment trusts (REIT). Both companies are sponsored by SmartStop Asset Management LLC.
SSGT stockholders approved the merger on January.18. SST II acquired 29 self-storage facilities and obtained the right to acquire one other facility under contract, according to a press release.
SST II has historically focused on stabilized properties, the SSGT acquisition adds growth properties to SST II's portfolio, providing the company with opportunities in the development, redevelopment and lease-up of self-storage properties. Moreover, the addition of SSGT's portfolio expands SST II's geographic reach into three new states—Arizona, Massachusetts and Texas—and grows SST II's existing presence in seven other states and Ontario, Canada.
“We are excited to consolidate SSGT with SST II, creating a company valued at approximately $1.4 billion with revenue that we anticipate will exceed $100 million this year. The SSGT portfolio will infuse SST II with a key growth driver, along with adding assets in strategic SST II markets, such as Toronto, Canada, for further economies of scale.” Said by H. Michael Schwartz, CEO
The SSGT portfolio comprises approximately 2 million net rentable square feet in 18,400 units, which includes 83 self-storage facilities in Canada and the United States. It comprises approximately 51,300 self-storage units and about 6 million rentable square feet of storage space.