(Reuters) – The Blackstone Group has reached an agreement to buy Simply Self Storage from the owner Canada’s Brookfield‘s asset manager for $1.2 billion, an asset management spokeswoman said late Sunday.
The spokeswoman said “Blackstone’s non-commercial real estate investment trust, known as BREIT, is acquiring an 8-million-square-foot portfolio of Self Storage facilities“, an earlier report from The Wall Street Journal confirms. However, Bloomberg reported earlier this month that Brookfield was looking for a deal to sell the real estate company.
The Canadian company acquired Simply Self Storage for $830 million in 2016 when it had 90 locations. The utility provider Self Storage now operates more than 120 locations in 23 US states, including Texas, Florida, New York and California, according to their website.
The newspaper quoted earlier on Sunday in a quote from Tyler Henritz, head of acquisitions in the Americas for Blackstone real estate, that BREIT, which was launched in 2017 and has a net asset value of $19 billion, plans to continue to buy and manage smaller assets in the fragmented industry under the brand. Trade Simply. Henritz said Self Storage has remained resilient during economic cycles, and this was most evident during the COVID-19 pandemic as people are no longer tied to office locations and have moved out of cities or gone to stay with relatives.