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StorageVault Acquires Sentinel Storage, 3 Other Canada Self-Storage Assets for $429M

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Update 8/3/17 – StorageVault has closed on the 24 self-storage facilities that were part of the Sentinel Storage portfolio. In addition to paying for the assets through the issuance of company shares, cash on hand and mortgage financing, the company used funds from a new revolving credit agreement of up to $270 million, which was advanced at the closing of the transaction, according to a press release.

The credit agreement, led by The Bank of Nova Scotia, also includes the Bank of Montreal, Canadian Imperial Bank of Commerce, Canadian Western Bank, National Bank of Canada, Raymond James Finance Company of Canada Ltd. and The Toronto-Dominion Bank.

“We are very happy with the credit agreement and its strong sponsorship,” said Iqbal Khan, chief financial officer. “It provides us with the flexibility to apply StorageVault’s operating system to the acquisition and the ability to reduce our cost of debt.”


6/27/17 – StorageVault has officially acquired one of two Montreal self-storage facilities it agreed to buy last month. The $8 million purchase was made with funds on hand.

The company is also negotiating a purchase agreement with Access Self Storage, a major shareholder of StorageVault, to buy six Access facilities for $34.2 million, according to a press release. Those properties are in Nova Scotia, Ontario and Quebec, Canada.

The deal with Access is subject to approval by TSX Venture Exchange, the Toronto stock exchange. It would be paid for by issuing up to $7.5 million in common shares at $2.80 per share, along with cash and financing, the release stated. The deal is expected to close around Aug. 15.

StorageVault has been actively acquiring Access properties. The deals include five assets that changed hands for $48 million last September.


5/17/17 – StorageVault Canada Inc. has agreed to purchase $429.2 million in self-storage assets in recent weeks. The agreements include all 24 Sentinel Storage locations across Canada, two unrelated facilities in the Montreal market and the third-party management business of Access Results Management Services Inc. (ARMS), a related entity to StorageVault, according to company officials.

StorageVault signed an agreement in March to acquire Sentinel by purchasing the outstanding shares from private company TargetCo ULC for $396.6 million. The portfolio is spread across Alberta, British Columbia, Manitoba, Nova Scotia, Ontario and Quebec. The purchase will be made by issuing $20 million in StorageVault shares at $1.70 per share, with the remainder paid with cash, debt assumption and mortgage financing, according to a press release. It’s expected to close by June 30.

StorageVault has also signed agreements to buy two unrelated self-storage properties in Greater Montreal for $16.6 million. The facilities will give the operator 10 assets in the local market. One purchase price of $8.6 million is payable by issuing $500,000 in common shares at $2.50 per share, with the remainder paid with cash and financing. The second asset is being acquired for $8 million through cash and financing, officials said. Both deals are expected to close by July 31.

In March, StorageVault also agreed to bring the management of its 50 locations in-house and acquire the third-party management contracts for more than 55 self-storage facilities from ARMS for $16 million. The purchase was expected to close March 31 and is being paid for by issuing $11 million in common shares at $1.70 per share and cash. The hold price for the shares expires Aug. 1.

“The third-party management platform is an important acquisition funnel for StorageVault, and it provides a separate and valuable revenue stream,” officials said in a press release.

StorageVault operates several self-storage facilities and more than 3,200 portable-storage units in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan.

Sources:

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