Blackstone Real Estate Income Trust to Acquire Simply Self Storage for Approximately $1.2 Billion
October 26 2020 - 6:30AM
Business Wire
Blackstone Real Estate Income Trust, Inc. ("BREIT") today
announced that BREIT has entered into a definitive agreement to
acquire Simply Self Storage from a Brookfield Asset Management real
estate fund for approximately $1.2 billion. Simply Self Storage is
one of the top five private owners of self-storage and operates a
high-quality portfolio totaling eight million square feet across
the U.S. BREIT currently owns a $300 million portfolio of
self-storage facilities, and following this acquisition, BREIT will
be the third largest non-listed owner of storage in the U.S.1
Frank Cohen, Chairman and CEO of BREIT, said, “This transaction
is a complementary addition to BREIT’s high-quality portfolio of
income-generating real estate, which is heavily weighted towards
logistics and multifamily primarily in growth markets. Simply Self
Storage is a best-in-class company with significant potential for
growth through future acquisitions in a highly fragmented sector,
and similar to logistics, self-storage is a resilient sector
through economic cycles because of low tenant turnover, minimal
maintenance costs and stable cash flows. We look forward to
continuing to acquire high quality assets on behalf of our BREIT
investors.”
Brookfield acquired Simply Self Storage in 2016 in one of its
opportunistic real estate funds. Since that time, Brookfield more
than doubled the size of the company and helped transform the
business into a fully-integrated institutional platform. Simply
Self Storage has a robust talent base and leading technology and
processes across its facilities, including revenue management and
digital marketing.
More than 90% of BREIT’s real estate investments are in
multifamily, industrial, and net leased assets. BREIT has
approximately $3.6 billion of immediate liquidity to execute on
acquisitions of high-quality assets.
This transaction is expected to close prior to the end of 2020,
subject to certain customary closing conditions.
Simpson Thacher & Bartlett LLP is serving as legal advisor
to BREIT, and BofA Securities and Deutsche Bank Securities Inc. are
serving as financial advisors to BREIT. RBC Capital Markets LLC,
Newmark Group Inc., and Fried, Frank, Harris, Shriver &
Jacobson LLP advised Brookfield.
About Blackstone Real Estate Income Trust
Blackstone Real Estate Income Trust, Inc. (BREIT) is a
perpetual-life, institutional quality real estate investment
platform that brings private real estate to income focused
investors. BREIT invests in stabilized, income-generating U.S.
commercial real estate across key property types and to a lesser
extent in real estate-related securities. BREIT is externally
managed by a subsidiary of Blackstone (NYSE: BX), a global leader
in real estate investing. Blackstone’s real estate business was
founded in 1991 and has approximately $167 billion in investor
capital under management. Further information is available at
www.breit.com.
Forward-Looking Statements
Certain information contained in this communication constitutes
“forward-looking statements” within the meaning of the federal
securities laws and the Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by the use
of forward looking terminology, such as “outlook,” “indicator,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,”
“estimates,” “anticipates”, “confident,” “conviction,” “identified”
or the negative versions of these words or other comparable words
thereof. These may include financial projections and estimates and
their underlying assumptions, statements about plans, objectives
and expectations with respect to future operations, statements
regarding future performance and statements regarding identified
but not yet closed acquisitions. Such forward-looking statements
are inherently uncertain and there are or may be important factors
that could cause actual outcomes or results to differ materially
from those indicated in such statements. BREIT believes these
factors also include but are not limited to those described under
the section entitled “Risk Factors” in its prospectus, and any such
updated factors included in its periodic filings with the
Securities and Exchange Commission (the “SEC”), which are
accessible on the SEC’s website at www.sec.gov. These factors
should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this document (or BREIT’s prospectus and other filings). Except
as otherwise required by federal securities laws, BREIT undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future
developments or otherwise.
1 Includes private owners and non-listed REITs.
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Ilana Mouritzen Ilana.Mouritzen@Blackstone.com Tel: (212)
583-5776
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