Safestore Holdings, Nuveen Partners to Enter Italian Self-Storage Market Via €175M Purchase of EasyboxSafestore Holdings, Nuveen Partners to Enter Italian Self-Storage Market Via €175M Purchase of Easybox

Self-storage operator Safestore Holdings PLC, which has locations in Europe and the United Kingdom, and American asset manager Nuveen Real Estate have formed an evenly split joint venture to acquire Italian self-storage provider Easybox for €175 million. The portfolio of 10 operating facilities and two in-progress developments comprises 780,000 square feet, according to sources.

Six Easybox locations are in Milan, with four in Turin and Rome, and one each in Genoa and Florence. The developments will be managed by Safestore and are scheduled to open in the first half of the year, sources reported.

Safestore will initially invest around €45 million for its 50% stake in the new partnership, which is supported by a loan. This investment is expected to slightly lower the company’s earnings per share (EPS) by 0.3% this year but is predicted to increase EPS by 2027 as the facilities become more profitable.

“The acquisition of Easybox provides us and our joint-venture partner, Nuveen, a foothold in one of Europe's most under-penetrated self-storage markets,” said Safestore CEO Frederic Vecchioli. “The high-quality Easybox portfolio will enable us to leverage our management expertise and deliver on our strategic aims to expand our portfolio into attractive new geographies. In line with our investment criteria, it is projected to generate 10% cash-on-cash returns on stabilization.”

Related:Europe/UK Self-Storage Operator Safestore Announces Financial Results for 2024 Fiscal Year

Founded in 1998, Safestore operates 220 self-storage facilities in Belgium, France, Germany, Italy, the Netherlands, Spain and the United Kingdom. It operates 8.59 million rentable square feet.

Nuveen, a subsidiary of financial-planning firm TIAA Investments, began investing in self-storage in 2003. It manages more than 2,400 real estate assets worldwide, with $154 billion under management. The company acquired 92.4% of Sweden self-storage operator 24Storage in 2021. The deal included 26 operating facilities and four properties under development. It also purchased a majority stake in Sweden-based Green Storage the same year.

Sources:
Halifax, Safestore Enters Italy With a €175m JV Acquisition
Shares Magazine, Safestore to Enter Italian Market With Easybox Acquisition