SmartStop Self Storage REIT, Inc., a self-managed and fully-integrated self storage company, and Strategic Storage Growth Trust II, Inc. (SSGT II), a private REIT sponsored by an indirect subsidiary of SmartStop, announced today that the companies have closed their previously announced merger, in which SSGT II will merge into a newly-formed subsidiary of SmartStop in a stock-for-stock transaction that values SSGT II’s real estate portfolio at approximately $280 million. The combined companies will have a portfolio of 152 wholly-owned operating properties, representing approximately 11.7 million net rentable square feet and 102,000 units.
With this merger, the combined companies will be positioned to recognize expense efficiencies and aggregate size and scale for the future. With all of the SSGT II properties already branded as SmartStop® Self Storage facilities, there has been and will be total continuity of operations throughout the process.”
As a result of the merger, SmartStop acquired all of the real estate owned by SSGT II, consisting of 10 wholly-owned operating self storage facilities located across seven states, an interest in one operating property held through an unconsolidated joint venture with an unaffiliated third party and two properties in various stages of development that are held through unconsolidated joint ventures with an unaffiliated third party. The total SSGT II operating portfolio, including the operating joint venture property, currently represents approximately 8,500 self storage units and 900,000 net rentable square feet. Additionally, the company obtained SSGT II’s rights to acquire (a) one parcel of land being developed into a self storage facility in an unconsolidated joint venture with an unaffiliated third party, and (b) a property located in Southern California.
“We are excited to announce the closing of this transaction for both SmartStop and SSGT II stockholders,” said H. Michael Schwartz, Chairman and Chief Executive Officer of SmartStop. “With this merger, the combined companies will be positioned to recognize expense efficiencies and aggregate size and scale for the future. With all of the SSGT II properties already branded as SmartStop® Self Storage facilities, there has been and will be total continuity of operations throughout the process.”
Robert A. Stanger & Company, Inc. served as financial advisor and Venable LLP served as legal counsel to the SmartStop special committee, while Nelson Mullins Riley & Scarborough LLP served as legal counsel to SmartStop. KeyBanc Capital Markets Inc. served as financial advisor and Bass, Berry & Sims PLC and Shapiro Sher Guinot & Sandler, P.A. served as legal counsel to the SSGT II board of directors.
