Global Self Storage Inc., a publicly traded self-storage real estate investment trust (REIT), intends to conduct a rights offering to eligible stockholders on Nov. 18 for the purchase of up to $11.6 million of newly issued shares. The company will use proceeds from the offering to partially fund an acquisition and repay borrowings under its revolving credit facility. Any leftover funds will be used to help fund additional acquisitions, expansion of existing properties or for general corporate purposes, according to a filing with Securities and Exchange Commission.
Global agreed to acquire Erie Station Storage LLC in West Henrietta, N.Y., on Oct. 4 for $6.2 million. Opened in 2016, the facility at 70 Erie Station Road comprises 46,850 square feet in 458 units. The REIT expects to close the deal during the fourth quarter, pending due diligence and customary closing conditions, according to the filing.
The rights offering comes on the heels of Global announcing last week that it has launched a third-party management platform.
Founded in 1983, Global Self Storage specializes in the acquisition, development, operation, ownership and redevelopment of storage facilities in the United States. Through its wholly owned subsidiaries, it owns 11 properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania and South Carolina. Its total operating portfolio comprises more than 880,000 rentable square feet. The company changed its name from Self Storage Group Inc. in January 2016.