SSGT stockholders will receive $12.00 per share in cash which represents a total purchase price of approximately $350 million, which includes SSGT debt that was assumed or repaid.
As a result of the SSGT REIT acquisition, SST II acquired 29 self storage facilities and obtained the right to acquire one other self storage facility currently under contract. While SST II has historically focused on stabilized properties, the SSGT acquisition adds growth properties to SST II’s portfolio, providing SST II with opportunities in the development, redevelopment and lease-up of self storage properties. Moreover, the addition of SSGT’s portfolio expands SST II’s geographic reach into three new states (Arizona, Massachusetts and Texas) and grows SST II’s existing presence in seven other states and Ontario, Canada.
“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.”