Shurgard Self-Storage, the international brand operated by real estate investment trust Public Storage Inc., is set to expand its storage portfolio in the United Kingdom after the completion of a privately placed debt offering of €300 million in senior guaranteed notes. The notes are being issued in three €100 million “bullets” of seven-, 10- and 12-year maturities with an average coupon of 3.01 percent, according to a press release.
The Shurgard Group intends to use the proceeds from the private placement, alongside €125 million in funding from Wells Fargo Securities to refinance existing debt and for general corporate purposes including development. The company wants to open 16 new U.K. self-storage locations by 2018, company officials said.
“We are seeing an increasing demand from individuals and businesses that need more space,” said Jean Kreusch, Shurgard’s chief financial officer. “This refinancing provides Shurgard with an opportunity to grow our business and meet the demand.”
Shurgard operates 189 facilities in seven European countries, with approximately 10 million net rentable square feet. Its U.K. portfolio comprises 22 locations. Based in Glendale, Calif., Public Storage has interests in 2,202 self-storage facilities in 38 states, with approximately 141 million net rentable square feet.