Wilmington Capital Management Inc. will acquire a 45 percent indirect interest in a portfolio of 12 self-storage facilities in southwestern Ontario, Canada, for an estimated $20.7 million. The proceeds will from equity of approximately $8 million, and an additional $3 million of equity will be raised for working capital to fund short-term requirements and other investment opportunities.
Wilmington's share of the cash consideration to complete this initiative is $5 million. An additional 45 indirect interest will be acquired by another investor for $5 million. Wilmington will also sell shares at a price of $1.28 per Class-A Share on a best-efforts basis, subject to regulatory approval.
The self-storage portfolio will be managed by Real Storage Management Inc., a newly-formed entity whose purpose is to provide management services to Wilmington Capital Management. The company is also looking for additional investment opportunities.