Sovran Self Storage, Inc., (NYSE:SSS), a self storage real estate investment trust (REIT) (“Sovran” or the “Company”), announced today that it has completed its acquisition of LifeStorage, LP (“LifeStorage”), a privately-owned self storage operator, for a purchase price of approximately $1.3 billion. The purchase was funded primarily with the proceeds of a 6.9 million share common stock offering the Company completed in May 2016, and a June 2016 sale of $600 million of 10 year notes with an interest rate of 3.5%.
“The LifeStorage properties are a tremendous addition to our portfolio” said David Rogers, Sovran’s Chief Executive Officer. “We’ve added 84 Class A stores to our portfolio, 55 of which are in some of our already established key markets. We’ve also gained a presence in two new markets: Las Vegas, NV and Sacramento, CA. We welcome the managers and staff at all of these stores to our family, and thank the employees at LifeStorage and Sovran for their diligence and hard work these past few weeks to complete this transaction.”
The newly acquired facilities will strengthen the Company’s strategic position in its existing markets, including the addition of 25 facilities in Chicago, 19 facilities in major Texas markets including eight in Austin and five in Dallas, and three each in Orlando and Los Angeles. The acquisition also provides entry into Las Vegas with 17 facilities, and Northern California with ten facilities, presenting the Company with immediate scale in both markets, and providing a base from which to pursue the acquisition of additional properties to fuel future growth.
Wells Fargo Securities, LLC acted as lead financial advisor and SunTrust Robinson Humphrey also acted as a financial advisor to Sovran. Phillips Lytle LLP and Hogan Lovells US LLP served as legal counsel in connection with this transaction.
Citigroup Global Markets Inc. acted as exclusive financial advisor to LifeStorage and Latham & Watkins LLP served as counsel to LifeStorage in connection with the transaction.
About Sovran Self Storage, Inc.
Sovran Self Storage, Inc. is an equity REIT that is in the business of acquiring and managing self storage facilities. The Company operates approximately 650 self storage facilities in 29 states. For more information, visit www.unclebobs.com, like us on Facebook, or follow us on Twitter.