On Nov. 21, the board of trustees of InStorage Real Estate Investment Trust provided an update regarding the company’s review of strategic alternatives to the take-over bid made by Canadian Storage Partners ULC (CSP), a subsidiary of TKG-StorageMart Partners LP. In mid-October, CSP made an unsolicited offer to acquire all of InStorage REIT’s outstanding trust units at $3.75 per unit.
InStorage advised by press release on Nov. 19 that the two companies were in discussion. They initially expected to complete a definitive support agreement by noon on Nov. 21, the expiry date of CSP’s take-over bid, but decided to continue negotiation in pursuit of an agreement in which the offer is raised to $4 cash per InStorage unit. Partners ULC has now extended its deadline until 10 a.m. on Dec. 5.
InStorage is the largest owner-operator of self-storage facilities in Canada, with 52 self-storage properties in Alberta, Saskatchewan, Ontario and Quebec.
TKG-StorageMart has 70 facilities in the United States and Canada, including five in Columbia. The Burnam family has been involved in the self-storage industry since 1974.