October 18, 2018

4 Min Read
Public Storage Affiliate Shurgard Self Storage Completes Initial Global Offering

Update 10/18/18 – Shurgard has completed its initial global offering on Euronext Brussels, meeting its goal of raising €575 million. The final offer price was €23 per share, which represented an implied market capitalization of €2.04 billion and 88.9 million total outstanding shares. Public Storage didn’t sell any of its 31.3 million shares as part of the offering, according to a press release.

“We are very pleased with the results of the global offering and are energized by the fact that so many institutional investors share our confidence in Shurgard and its growth potential across Europe,” said Marc Oursin, CEO of Shurgard. “The raised funds will help us continue Shurgard’s profitable growth strategy across the European continent by optimizing our existing portfolio, developing new stores in our key European markets and continuing our role as a consolidator with targeted bolt-on acquisitions.”

The €575 million raised makes Shurgard the second largest newly listed company on Euronext in the last 10 years, the source reported.

Oursin rang the Euronext bell to open trading. “With the ringing of the Euronext Brussels bell, we are starting a new chapter in our company’s history,” Oursin said. “Still, our core value will always remain the same: to provide the best storage experience for our customers and to further strengthen our platform of self-storage centers with growth across the seven countries where we operate.”

10/2/18 – Shurgard’s private placement on Euronext Brussels is expected to raise up to €575 million. The company will make available up to 25 million shares, valued at €2.4 billion, for €23 to €28 per share. Similar to its Luxembourg plan, the self-storage operator will use the funds to repay debt and fuel expansion. The company is eyeing a larger presence in urban areas, including Berlin, London and Paris, according to the source. Expansion includes a planned acquisition in the Kensington area of London.

The offer period will run until Oct. 11, with the final share price established on Oct. 12. The listing is set provisionally for Oct. 15. Shurgard has an over-allotment option of €75 million.

BNP Paribas, J.P. Morgan Securities and Société Générale will also act as joint, global coordinators and bookrunners in this offering. Similarly, HSBC Bank and Kempen & Co. will be joint bookrunners.

9/20/18 – Shurgard has announced its intention to launch an initial global offering, which will consist of a private placement on new shares to institutional investors. The company plans to use the proceeds to help fund its growth strategy and refinance a loan. Though no date has been set, Shurgard expects to make the offering “in the near future, subject to market conditions and the approval of a listing prospectus by the Luxembourg Commission de Surveillance du Secteur Financier,” according to a press release. The company is organized under Luxembourg law.

Company officials also expect to apply to the Belgian Financial Services and Markets Authority with intent to list the shares on Euronext Brussels, the Brussels stock exchange, the release stated.

Financial institutions BNP Paribas, J.P. Morgan Securities PLC and Société Générale S.A. will act as joint, global coordinators and bookrunners for the offering and admission to trading. HSBC Bank PLC and Kempen & Co. N.V. will also act as joint bookrunners.

6/1/18 – Shurgard Self Storage Europe SARL, the European affiliate of U.S.-based real estate investment trust (REIT) Public Storage Inc., is considering an initial public offering. If Shurgard does decide to sell securities, they may not be sold within the United States unless the offering is registered with the U.S. Securities and Exchange Commission, according to a press release.

Public Storage acquired Shurgard Storage Centers Inc. in August 2006. In March 2008, the REIT sold 51 percent of its interest to an institutional investor and now acts as the managing member of the joint venture.

“Shurgard began developing European self-storage properties in 1995. It currently owns and operates over 220 self-storage facilities with over 12 million net rentable square feet located in Belgium, Denmark, France, Germany, The Netherlands, Sweden and in the U.K.,” said Ron Havner, chairman and CEO. “We believe the European market presents excellent growth opportunities.”

No timeline was given for when the REIT would finalize a decision.

Based in Glendale, Calif., Public Storage also has interests in 2,392 self-storage facilities in 38 states, with approximately 159 million net rentable square feet.

BusinessWire, Public Storage’s Affiliate, Shurgard Self Storage SA, Completes its Initial Global Offering
MondoVisione, Shurgard Self Storage Makes Debut on Euronext Brussels
Reuters, Shurgard Self Storage to Raise 575 Mln Euros from Brussels Listing
Public Storage, Public Storage’s Affiliate, Shurgard Self Storage Europe S.a.r.l., is Considering an Initial Public Offering

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