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CubeSmart to Acquire New York City Self-Storage Portfolio for USD 540m
Friday 30 October 2020

US-based CubeSmart (NYSE: CUBE) has entered into an agreement to acquire a portfolio of eight self-storage properties in New York City from Storage Deluxe for USD 540m, the company said.

The portfolio, currently professionally managed by and branded CubeSmart, consists of 780,425 rentable square feet located in Brooklyn, Queens, and the Bronx, NY.

Consideration for the acquisition will consist of approximately USD 201.7m payable in cash, approximately USD 183.7m payable in class B Operating Partnership Units, and the assumption of approximately USD 154.6m of existing fixed-rate secured debt.

The company expects to finance the cash portion of the purchase price at closing through cash on hand and borrowings under the unsecured revolving credit facility.

The transaction is expected to close in two tranches, both in 4Q20, and is subject to customary closing conditions, including lender consent with respect to the debt that will be assumed.

No assurance can be given that the transaction will be consummated on contemplated terms, or at all.

CubeSmart is a self-administered and self-managed real estate investment trust. CubeSmart owns or manages 1,256 self-storage properties across the United States.

According to the 2020 Self Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the US.
Date Published: 30/10/2020