Nuveen/TIAA Acquires 93% Stake in Swedish Self-Storage Operator 24Storage

Update 12/9/21 – TIAA affiliate Nuveen Real Estate has acquired 92.4% of Sweden self-storage operator 24Storage through unconditional share purchase agreements and the Nov. 29 mandatory public offer to buy all outstanding shares. The purchase is based on the SEK 76 share price, valuing the deal at approximately SEK 2.1 billion, according to the source.

The deal includes 26 operating facilities and four properties under development. Comprising 12,000 units, the sites are concentrated near Sweden’s three largest cities: Gothenberg, Malmö and Stockholm.

“The acquisitions enable Nuveen to build a market-leading platform in Sweden, underpinned by a high-quality portfolio of 44 assets and a highly experienced management team,” Nuveen officials said in a released statement. “In addition, the platforms benefit from complimentary strategies with a location-driven focus, digitalized operational platforms and pioneering sustainability credentials.”

“We are delighted to be acquiring 24Storage, the second largest self-storage operator in the Swedish market,” said Jasper Gilbey, who heads the TIAA General Account and alternative investments in Europe for Nuveen. “The company has successfully built up a high-quality real estate portfolio in Sweden’s top three cities, and we fully subscribe to their strong focus on technology and sustainability to drive operational efficiencies and provide a future-proofed storage solution.”

Along with Nuveen’s recent acquisition of Green Storage, the combined portfolio “will create a market-leading platform in Sweden with significant synergies and exciting growth potential in the coming years,” Gilbey told the source.

12/1/21 – Shurgard Self Storage withdrew its offer to purchase 24Storage after financial-services firm Teachers Insurance Annuity Association of America (TIAA) increased its bid to SEK 76 per share. TIAA, bidding through Sweden affiliate T-C Storage BidCo AB, initially offered SEK 62 per share on Nov. 8 before Shurgard made a larger offer. T-C Storage has agreed to buy 92.38% of 24Storage outstanding shares and set an acceptance deadline of Dec. 13, according to a press release.

“The offer from TIAA validates Shurgard’s interest in 24Storage and underpins the strong investor interest in self-storage assets,” Shurgard officials said. “Shurgard remains committed to generating value for all its stakeholders, and this does not change Shurgard’s interest or strategy to grow Shurgard in Sweden, where Shurgard continues to remain the largest self-storage operator by square meter.”

The 24Storage Bid Committee won’t issue a new recommendation regarding the T-C Storage offer due to conflicts of interest among committee members, 24Storage officials said.

TIAA affiliate Nuveen Real Estate acquired the Green Storage portfolio in Sweden earlier this month. TIAA created T-C Storage in June as a Swedish limited liability company specifically to make the 24Storage bid, according to a TIAA press release.

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 $1.2 trillion in global assets under management. Nuveen has about $1.5 billion in self-storage assets under management in Europe and the United States. It will serve as the investment adviser to T-C Storage, the release stated.

11/23/21 – Shurgard Self Storage Europe SARL, the European affiliate of U.S.-based real estate investment trust Public Storage Inc., has made a public cash offer to the shareholders of 24Storage AB in its bid to acquire the Swedish self-storage operator. Shurgard has offered SEK 72 per share, valuing all outstanding shares at approximately SEK 1.08 million. If approved, the acquisition would add 27 facilities comprising 71,000 square meters to the Shurgard portfolio, according to a press release.

The share offer is 16.5% higher than the closing price of 24Storage shares on Nov. 19. It’s conditional based on acceptance by 90% of shareholders and approval by regulatory authorities. It excludes shareholders based in Australia, Canada, Hong Kong, Japan, New Zealand, South Africa and Switzerland.

Founded in 2015, 24Storage is traded in Sweden on the Nasdaq First North Growth Market. Shareholders have until Dec. 15 to accept the offer, which was unanimously recommended by the 24Storage Bid Committee. If approved, the transaction is expected to close on Dec. 22, the release stated.

“We are committed to growing Shurgard’s portfolio in Sweden with a high-quality self-storage proposition for local customers. The acquisition of 24Storage complements our existing position and enhances our Pan-European strategy,” said Marc Oursin, Shurgard CEO. “Through this transaction, we create a larger, scalable and environmentally stable and efficient portfolio. Our intention is to combine expertise and continue to grow, with our offer reflecting an attractive value proposition to customers and shareholders.”

Sweden is Shurgard’s third largest market but has the highest brand awareness, Shurgard officials said. The deal would expand the company’s presence in Sweden to 63 facilities comprising approximately 250,000 rentable square meters.

Shurgard operates 252 self-storage facilities comprising 1.3 million net rentable square meters in Belgium, Denmark, France, Germany, The Netherlands, Sweden and the United Kingdom.

Headquartered in Glendale, California, Public Storage has interests in 2,678 self-storage facilities in 39 states, with approximately 186 million net rentable square feet. It holds a 35% interest in Shurgard.

CRE Herald, Nuveen to Acquire Self-Storage Operator in Sweden
Shurgard, Shurgard Withdraws Public Cash Offer to the Shareholders of 24Storage
24Storage, Information From 24storage Regarding the Increased Offer From T-C Storage Bidco
TIAA, TIAA, through T-C Storage BidCo, Announces a Recommended Cash Offer of SEK 62 Per Share to the Shareholders of 24Storage AB
Shurgard, Shurgard Announces a Public Recommended Cash Offer to the Shareholders of 24Storage

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