Public Storage To Buy Blackstone REIT's Asset For $2.2B, Boosting Sunbelt Presence

Public Storage PSA penned a deal with Blackstone Inc's BX Blackstone Real Estate Income Trust, Inc. (BREIT) to acquire Simply Self Storage from BREIT for $2.2 billion.

The acquired portfolio comprises 127 wholly-owned properties and 9 million net rentable square feet, with 65% of the assets in high-growth Sunbelt markets, located across 18 states and in high-population growth areas. 

The company plans to integrate an additional 25 properties into its PS Advantage third-party management platform. 

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This buyout supports PSA's ongoing opportunistic growth strategy.

The deal is expected to close in the third quarter of 2023, subject to the satisfaction of customary closing conditions. 

"This acquisition reflects the continued execution of our multi-factor external growth platform, which includes acquisitions, development, redevelopment, expansion, and third-party management," said Public Storage CEO Joe Russell. 

The transaction "further demonstrates our position as an acquirer of choice in the industry," he added, praising Blackstone for "growing and improving the quality and operations of the Simply portfolio over the past few years."

As of March 31, PSA's cash and equivalents stood at $695 million.

Price Action: PSA shares closed higher by 0.93% at $291.73 on Friday.

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