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Strategic Storage REITs Ink $51 Million Deal

Strategic Storage Growth Trust and Strategic Storage Trust II, two publicly registered non-traded real estate investment trusts sponsored by SmartStop Self Storage Inc., agreed to purchase the Storage Spot Portfolio, which consists of four self storage facilities in Toronto, Canada, for $51 million. Located in the Stoney Creek, Oakville, Burlington and Milton areas of Toronto, the portfolio totals 313,800 square feet with 3,360 individual self storage units.

The Stoney Creek property is approximately 81,600 square feet and consists of 780 units with a purchase price of $2.1 million. The property is currently under development.

The Oakville property is approximately 82,400 square feet and consists of 820 units with a purchase price of $16.9 million. The property is also under development.

Built in 2011, the Burlington property is approximately 79,700 square feet and consists of 910 units with a purchase price of $19.2 million.

The Milton property was built in 2006 and totals 70,100 square feet with 850 individual self storage units. The purchase price is $12.8 million.

Strategic Storage Growth Trust agreed to acquire the Stoney Creek and Oakville properties for $19 million, while Strategic Storage Trust II agreed to purchase the Burlington and Milton properties for $32 million.

The acquisitions are expected to close in the first quarter of 2016 and will be funded with a combination of net proceeds from the public offerings and/or other debt financing.

Since the properties are located in Canada, a subsidiary of SmartStop Asset Management LLC, the companies’ sponsor, will manage the properties under the SmartStop® Self Storage brand.

Strategic Storage Growth Trust focuses on the acquisition, development, redevelopment and lease-up of self-storage properties. As of September 30, 2015, their portfolio consisted of nine self-storage facilities located in five states comprising approximately 6,620 self-storage units and approximately 700,200 net rentable square feet of storage space.

Strategic Storage Trust II focuses on stabilized self storage properties. As of September 30, 2015, the company owned 32 self storage facilities located in ten states comprising approximately 18,030 units and approximately 2.0 million rentable square feet.