Public Storage has agreed to acquire Simply Self Storage from Blackstone Real Estate Income Trust Inc. for $2.2 billion. The acquisition is currently expected to close in the third quarter of 2023.
The portfolio comprises 127 wholly owned properties and 9 million net rentable square feet that are geographically diversified across 18 states and located in markets with population growth that has been approximately double the national average since 2018. Approximately 65% of the properties are located in high-growth Sunbelt markets.
Public Storage will integrate an additional 25 properties into its PS Advantage third-party management platform. By combining the Simply team with Public Storage’s platform, the company will deepen its presence in fast-growing markets, bolster its core strengths and unlock additional opportunities for growth and value creation, the announcement said.
Since 2019, Public Storage has expanded its portfolio by approximately 55 million net rentable square feet, or 34%, through $10.6 billion of acquisitions, development and redevelopment, including Simply and additional properties previously announced as under contract.
“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. “We are pleased to complete this important transaction with Blackstone, which further demonstrates our position as an acquirer of choice in the industry. Blackstone has done a tremendous job of growing and improving the quality and operations of the Simply portfolio over the past few years.”
Eastdil Secured served as financial advisor to Public Storage, and Wachtell, Lipton, Rosen & Katz and Hogan Lovells US LLP acted as legal advisors. Wells Fargo and Newmark Group Inc. served as lead financial advisors to BREIT, and BMO Capital Markets and Sumitomo Mitsui Banking Corporation (SMBC) also served as financial advisors. Simpson Thacher & Bartlett LLP acted as BREIT’s legal advisor.
