Nuveen/TIAA Agree to Acquire Self Storage Group ASA of Europe

T-C Storage HoldCo AB, a subsidiary of financial-services firm Teachers Insurance Annuity Association of America (TIAA) and affiliate of American asset manager Nuveen Real Estate, has reached an agreement to buy Norway-based Self Storage Group ASA (SSG) for NOK3.79 billion. The cash offer of NOK40 per share represents a 66.7% premium over SSG’s closing price on the Oslo Stock Exchange on Sept. 19, according to a press release.

The SSG Board of Directors has unanimously recommended the offer be approved by shareholders, who hold 70.5% of the company’s outstanding stock. Several of the company’s largest shareholders, including affiliates of New York-based private investment firm Centerbridge Partners LP, have already agreed to the deal, the release stated. Subject to certain conditions, the transaction is expected to close by Dec. 31.

The SSG portfolio comprises more than 170,000 square meters of rentable space. It includes 142 self-storage facilities across Denmark, Norway and Sweden, under the City Self Storage and OK Minilager brand names, according to a source. The transaction furthers the European self-storage interests for Nuveen and TIAA, which acquired Sweden operators Green Storage and 24Storage in 2021.

“TIAA is a major owner of self-storage in the U.S. and Europe, having invested in the sector for more than 20 years,” said Mario Pello, head of Nuveen Real Estate and TIAA General Account in Europe. “In Europe, we have been actively monitoring the growth journey of [SSG] for a long period of time, given the high quality of the portfolio, the company’s dominant positioning in the Norwegian market and strong synergies with our existing Swedish platform. Through the acquisition of the company, we will create a unique pan-Nordic platform with market-leading positions in Norway and Sweden—two of our high-conviction markets—with scope to expand further into Denmark.”

“Through acquisitions such as City Self Storage, Eurobox, Dit Pulterkammer and numerous asset transactions, as well as organic growth focus, we have together built a leading pan-Scandinavian self-storage company,” said Fabian Søbak, CEO of SSG. “Well-supported by Centerbridge, we successfully leveraged our market-leading position in Norway to accelerate growth across Scandinavia. I am confident that Nuveen and their Green Storage platform will be a good new owner for the company and also provide an exciting opportunity for the great SSG team.”

Founded in 1918, TIAA offers investment options across different asset classes including real estate and other specialized portfolios. Its investment platform, TIAA General Account, has invested in a diversified portfolio of $283 billion in assets, with more than $48 billion invested in real estate. Nuveen and its branded affiliates manage TIAA’s capital, with approximately $1.1 trillion in global assets. Nuveen has about $1.5 billion in self-storage properties under management in Europe and the United States. It serves as the investment adviser to T-C Storage.

Sources:
Cision, Self Storage Group ASA and T-C Storage HoldCo AB Announces Recommended Voluntary Cash Offer at NOK 40 Per Share
IP&E Real Assets, Nuveen Accelerates European Self-Storage Expansion With Acquisition of SSG