StorageVault (SVI-TSX) has agreed to acquire seven stores from seven vendor groups for an aggregate purchase price of $171,600,000, subject to customary adjustments. Six of the acquisitions are arm’s length and one, totaling $14,000,000, is a related party acquisition with Access Self Storage Inc. as the vendor. It is anticipated that the acquisitions will close in Q2 and Q3 2022.
Six of the assets are located in Ontario (four are core GTA) and one in Alberta. The acquisitions will result in StorageVault owning 204 stores and owning and managing 236 stores across Canada.
Purchase Price and Payment
The aggregate purchase price is $171,600,000, subject to adjustments, and is payable by the issuance of an aggregate of up to $5,000,000 of StorageVault common shares to the vendor of the related party acquisition based on an agreed upon VWAP ending three days prior to closing, with the remainder of the aggregate purchase price being paid with funds on hand, first mortgages, and mortgage assumptions.
Conditions Precedent to the Acquisitions
The obligations of StorageVault to complete the acquisitions are subject to conditions including, but not limited to: satisfactory due diligence, mortgage assumption approvals, obtaining first mortgage commitments and satisfactory environmental site assessment reports. The obligations of both StorageVault and the vendors to complete the closing of the acquisitions are subject to the satisfaction of other customary closing conditions and include, for the related party acquisition, acceptance of the TSX (“TSX”).
