NYX Capital Corp. Disposes of Canadian Self-Storage Portfolio for $310M

NYX Capital Corp., a private-equity real estate investment firm, has sold its nine-property self-storage portfolio in Ontario, Canada, to three regional operators for $310 million. The facilities in Greater Toronto Area (GTA) and Quebec comprise 758,000 square feet of rentable space, according to the source.

SmartStop Self Storage, which operates 31 facilities in Ontario, acquired eight facilities in the province comprising 7,500 storage units for $300 million. Bluebird Self Storage and StoreWest Developments purchased other properties in the portfolio including those still under development, the sources reported.

“We decided to sell our portfolio because, basically, we executed our business plan and it was time to sell,” said Yashar Fatehi, CEO, founder and president of NYX. “We felt it was the right time in the market, potentially because increasing interest rates will eventually increase the [capitalization] rates and increase costs.”

Despite the disposition of its active portfolio, NYX is still interested in the self-storage asset class and plans to pursue new opportunities. “We are actively chasing self-storage sites, and we have one on contract right now that we will hopefully start building in the next year or two,” Fatehi said.

Last month, Bluebird Self Storage and StoreWest were named asset managers for a joint venture between investment firms ICM Asset Management and Meckelborg Financial Group Ltd. Open to outside investors, the resulting fund will pursue acquisition and development opportunities in major metropolitan markets across Canada. The companies are partnering on seven new self-storage developments this year, with more planned for 2024.

Based in Toronto, NYX has $1.2 billion in projects under management or development in the film-studio, fitness, industrial and residential asset classes.

Sources:
Canadian Property, NYX Capital Sells Self-Storage Portfolio
Real Estate News Exchange, Why NYX Capital Sold its $310M Self-Storage Portfolio