Public Storage enters Canada with $1.5bn PS Canada acquisition

US-listed self-storage group Public Storage has entered the Canadian market through the acquisition of Public Storage Canada (PS Canada) in a deal valued at up to $1.48bn (€1.29bn) in cash and stock.

Under the terms of the agreement, the acquisition will be funded with $310m in cash and $889m in Public Storage’s operating partnership’s units, valuing each unit at $321.98.

PS Canada could also receive up to $288m in additional earn-out payments in units subject to performance targets.

The Canadian platform was originally established by Public Storage founder Wayne Hughes and has been independently operated by the Hughes family under the same brand for decades.

PS Canada’s portfolio consists of 68 properties totalling 5.3m sqft across markets that include Toronto, Vancouver, Montreal, Calgary and Ottawa.

In the US, Public Storage operates a portfolio of 3,533 facilities covering 258m sqft across 40 states. The company also holds a 35% stake in Shurgard Self Storage, which provides an additional 18m sqft of Western European exposure across 332 facilities.

In March, Public Storage also agreed to acquire NYSE-listed peer National Storage Affiliates Trust in a deal with a $10.5bn enterprise value. The transaction will add more than 1,000 properties, covering 69m rentable sqft across 37 US states and Puerto Rico.

Tom Boyle, CEO of Public Storage, said: “The acquisition of PS Canada represents a strategic opportunity to expand the Public Storage platform into major Canadian markets with attractive long-term fundamentals. This portfolio includes high-quality real estate in key markets, carries the Public Storage brand and offers meaningful upside through our PS Next operating platform.

“Together with our previously announced National Storage Affiliates Trust transaction, this acquisition demonstrates the momentum of our value creation engine and the opportunity to deploy capital into highly strategic external growth opportunities.”

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