Update 4/17/19 – StorageVault has closed on its acquisition of the self-storage assets within Real Storage Private Trust. The purchase includes $106 million in debt repayment, $4.75 million in aggregate holdbacks and customary adjustments, and cash. Wilmington received $53 million from the sale, according to a press release.

Wilmington will retain assets separate from its self-storage business. The transaction will provide the company with “financial flexibility to continue to add value to its remaining operating platforms and to actively seek additional investment opportunities where it can add value,” the release stated.

“The transaction is the culmination of the efforts of a dedicated and successful team and affords Wilmington significant flexibility going forward,” Killi said.

Wilmington is a Canada-based asset-management and investment company which specializes in in the energy and real estate sectors. It invests its own capital, alongside partners and co-investors, in hard assets and private-equity funds, and manages the assets through its operating platforms.

2/7/19 – StorageVault Canada Inc., which operates 160 self-storage facilities throughout the Canadian provinces, has agreed to acquire 38 storage properties from Canadian investment and asset-management company Wilmington Capital Management Inc. and other vendors for $275 million. StorageVault will purchase all the equity interests in Real Storage Private Trust from Wilmington, 2242907 Ontario Inc., Real Storage GP Inc., SNS Storage (Ontario) Ltd. Partnership and Woodfield Ltd. Partnership, according to a press release.

The portfolio includes 25 facilities in Ontario, 11 in Alberta, and one each in British Columbia and Manitoba. The deal includes a 33 percent indirect interest in a Toronto facility and a 24 percent indirect interest in a development property in Kitchener, Ontario, the release stated.

“The transaction reflects a compelling valuation for Wilmington’s interest in the private trust and is in keeping with Wilmington’s strategy of seeking undervalued investment opportunities and optimizing the timing of value realization,” said Christopher Killi, CEO of the private trust and Wilmington’s managing partner of real estate.

StorageVault intends to pay for the acquisition with cash, debt assumption and mortgage financing. It’ll also provide up to $50 million in common shares to the sellers. The final amount and price will be mutually agreed upon at a future date, the release stated. Wilmington will receive about $53 million from the net purchase price.

The transaction is subject to approval by at least 66.67 percent of shareholder voting, which is expected to take place on March 28. It’s also subject to customary conditions and regulatory approvals. The deal is expected to close before June 30.

As of Sept. 30, 2018, the self-storage properties comprised about 59 percent of the net-book value of Wilmington’s assets. The company will retain its non-self-storage assets, which include private-equity funds and natural-gas interests.

StorageVault operates self-storage facilities in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan. It’s portfolio of 106 owned properties comprises more than 6 million rentable square feet.

Sources:
Globe Newswire, Wilmington Closes Sale of Self-Storage Business to StorageVault
Globe Newswire, Wilmington Announces Sale of Self-Storage Business to StorageVault
Real Estate News Exchange, StorageVault to Acquire 38 Canadian Self-Storage Facilities