StorageVault Canada Inc. has agreed to acquire Parksville Mini Storage in Parksville, British Columbia, Canada for $2.8 million. If all conditions of the acquisition agreement are satisfied, the transaction will close on Nov. 1.
Parksville Mini Storage is a 135-unit facility with 27,000 square feet of rentable storage area and an additional 1.5 acres of undeveloped vacant land. The facility is part of the Regional District of Nanaimo, which includes the City of Nanaimo, City of Parksville, Town of Qualicum Beach and District of Lantzville. StorageVault intends to develop and operate a PUPS portable-storage business on the vacant land.
The purchase-price payment terms for the acquisition are a $100,000 initial refundable deposit, a $180,000 deposit to be paid upon removal of due-diligence conditions, a final cash payment of $1,120,000 at closing, and a $1,400,000 vendor-take-back mortgage with an annual interest rate of 5 percent. StorageVault intends to finance the cash portion from the proceeds of its previously closed preferred-share offering.
StorageVault owns and operates Canadian PUPS portable storage in Saskatoon, Trans Can Mini-Stor in Regina, and Kenaston Self Storage in Winnipeg. The company intends to grow through the acquisition of self-storage properties and the development of portable-storage facilities in Canada. Its common shares are listed on the TSX Venture Exchange.