January 28, 2010 1:10 PM
Extra Space Storage announced yesterday that it has closed a joint venture with a Harrison Street Real Estate Capital (HSRE) affiliate. HSRE and Extra Space each received a 50 percent interest in the joint venture, to which HSRE had contributed about $15.8 million in cash, while Extra Space contributed 19 wholly-owned properties in California, Florida, Nevada, Ohio, Pennsylvania, Tennessee, Texas, and Virginia. The properties secured about $101 million in debt, which was assumed by the joint venture. Extra Space will continue to operate the 19 properties.
"There's a couple of reasons behind it: to generate a little bit of cash, to offload a little bit of debt into the joint venture," Extra Space's vice president of marketing and corporate communication, James Overturf, explained to the Salt Lake Tribune today. "It de-leverages us a little bit....But more than anything, it establishes a relationship with a really good joint venture partner." [More]
November 24, 2009 6:38 PM
Three Canadian companies announced yesterday that they are signing a term sheet to enter into a joint venture together. The three companies, StorageVault, Can-Stor Self Storage LP and CSS Holdings LP, plan to introduce the portable unit concept (PUPS) to their properties. They intend to integrate their fixed storage with PUPS businesses at each of their properties.
The term sheet is only a very preliminary step. At this point, it is tentative -- the term sheet itself must be agreed upon and approved by the Boards of Directors of each company, the joint venture itself must be approved, and shareholders and investors for each company may have to approve, before the joint venture can move forward at all. Once all those approvals are obtained, the TSX Venture Exchange must also approve. [More]