Strategic Storage Growth Trust Inc., a non-traded real estate investment trust sponsored by SmartStop Asset Management, has completed its recently approved merger with affiliated non-traded REIT, Strategic Storage Trust II.
Strategic Storage Trust II acquired all of the real estate owned by Strategic Storage Growth Trust, consisting of 29 self storage facilities located in 10 states and Canada, obtained the rights to acquire one self storage facility under contract with the company.
Strategic Storage Growth Trust stockholders will receive $12.00 per share in cash, which represents a total purchase price of approximately $350 million, including outstanding debt to be assumed or repaid. The consideration is expected to be paid to stockholders by February 7th, or 10 business days after the January 24th merger closing date.
“We are excited to consolidate SSGT with SST II, creating a company valued at approximately $1.4 billion with revenues that we anticipate will exceed $100 million this year,” said H. Michael Schwartz, CEO and chairman of the board of directors of SST II. “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.”
Strategic Storage Growth Trust focuses on the acquisition, development, redevelopment, and lease-up of self storage properties. The offering launched in January 2015 and raised more than $281 million in investor equity before closing in March 2017, according to Summit Investment Research.
Strategic Storage Trust II invests in stabilized self storage properties and oversees a portfolio of 83 properties located in 14 states and Ontario, Canada. The offering was declared effective by the SEC in January 2014 and closed three years later after raising $570 million in investor equity.
SmartStop sponsors four public non-traded REITs: Strategic Storage Trust IV Inc., Strategic Storage Trust II Inc., and Strategic Storage Growth Trust Inc., all focused on self storage assets, and Strategic Student & Senior Housing Trust Inc., focused on student and senior housing assets. SmartStop is also a sponsor of Section 1031 exchange offerings using the Delaware statutory trust structure.
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