Extra Space Storage Announces Acquisition of 21 Properties from Joint Venture Partner
Extra Space Storage (NYSE: EXR) today announced that it entered into a letter of intent with a joint venture partner to acquire the partner's interest in one of the Company's existing joint ventures that owns 21 self-storage properties in 11 states. These 21 assets are currently operated by the Company under the Extra Space Storage brand. The joint venture properties contain approximately 1.7 million square feet of net rentable space in approximately 13,600 units. As of September 30, 2012, approximately 89.0% of the net rentable space at these properties was occupied. Upon closing, the Company would own 100% of the joint venture properties.
In addition, the Company has entered into definitive purchase agreements to acquire seven additional properties located in Florida, Maryland, Massachusetts and New Jersey, with an aggregate of approximately 575,000 square feet of net rentable space in approximately 5,800 units. As of September 30, 2012, approximately 86.6% of the net rentable space at these properties was occupied. In total, with the acquisition of the joint venture partner's interest, the Company now has 28 properties under contract or letter of intent, with an aggregate purchase price of approximately $190.2 million.
These acquisitions are subject to the completion of the Company's due diligence, the satisfaction of other closing conditions and, in the case of the acquisition of the joint venture partner's interest, the negotiation and execution of a definitive purchase agreement. The Company intends to close each of these acquisitions by December 31, 2012; however, there can be no assurances that these conditions will be satisfied or that the acquisitions will close on the terms described, or at all.
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