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StorageVault Acquires Sentinel Storage, 3 Other Canada Self Storage Assets for $429 Million

StorageVault Acquires Sentinel Storage, 3 Other Canada Self Storage Assets for $429 Million
Posted: 5/17/2017 Link: InsideSelfStorage.com
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StorageVault Canada Inc. has agreed to purchase $429.2 million in self storage assets in recent weeks. The agreements include all 24 Sentinel Storage locations across Canada, two unrelated facilities in the Montreal market and the third-party management business of Access Results Management Services Inc. (ARMS), a related entity to StorageVault, according to company officials.

StorageVault signed an agreement in March to acquire Sentinel by purchasing the outstanding shares from private company TargetCo ULC for $396.6 million. The portfolio is spread across Alberta, British Columbia, Manitoba, Nova Scotia, Ontario and Quebec. The purchase will be made by issuing $20 million in StorageVault shares at $1.70 per share, with the remainder paid with cash, debt assumption and mortgage financing, according to a press release. It’s expected to close by June 30.

StorageVault has also signed agreements to buy two unrelated self storage properties in Greater Montreal for $16.6 million. The facilities will give the operator 10 assets in the local market. One purchase price of $8.6 million is payable by issuing $500,000 in common shares at $2.50 per share, with the remainder paid with cash and financing. The second asset is being acquired for $8 million through cash and financing, officials said. Both deals are expected to close by July 31.

In March, StorageVault also agreed to bring the management of its 50 locations in-house and acquire the third-party management contracts for more than 55 self storage facilities from ARMS for $16 million. The purchase was expected to close March 31 and is being paid for by issuing $11 million in common shares at $1.70 per share and cash. The hold price for the shares expires Aug. 1.

“The third-party management platform is an important acquisition funnel for StorageVault, and it provides a separate and valuable revenue stream,” officials said in a press release.

StorageVault operates several self storage facilities and more than 3,200 portable-storage units in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan.

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