Abacus Property Group, the Australia-based, publicly traded real estate investment trust (REIT) that purchased a 25 percent Interest in Storage King in August 2018, has agreed to acquire the remaining 75 percent for $50 million. The deal is expected to be complete by Nov. 30, according to a press release.
As of June 30, Storage King licensed and managed more than 170 self-storage locations. As part of the deal, company co-founder and CEO Michael Tate will remain in his leadership role and join the Abacus executive team. Tate and co-founder David Scanlen each sold a 37.5 percent stake in the company they launched in Sydney in 1998, a source reported.
Tate will continue to lead “the operations, technological advancement and customer value proposition of the Storage King branded stores owned by Abacus and its third-party owners,” said Steven Sewell, managing director of Abacus. Storage King has a brand presence in Australia, New Zealand, South Africa and the United Kingdom.
Abacus first invested in self-storage in 2005, accumulating a portfolio of 81 facilities, which were managed by Storage King. “The acquisition of the Storage King operating platform was identified as a key strategic imperative for Abacus, given our ownership of self-storage assets exceeds $1.2 billion and comprises 40 percent of our balance sheet,” Sewell said. “A more integrated management business is critical to driving our self-storage business and enhancing associated asset returns.”
In addition to Storage King, Abacus also announced it had acquired four self-storage facilities in Melbourne, Sydney and Wollongong for $45 million. The separate deals follow the company’s 7 percent acquisition in rival self-storage operator National Storage REIT in May.
“These transactions align with our strong, asset-backed, annuity-style business model where capital is directed towards assets in key sectors that provide potential for enhanced income growth and ultimately create value,” Abacus officials said in the release.
Abacus is a diversified REIT with interests in office, residential and retail in addition to self-storage. The company deployed more than $600 million in capital during the first half of its 2020 fiscal year, acquiring assets and pursuing joint ventures in the office and self-storage sectors.
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