May 20, 2016
Sovran Self Storage Inc. has entered into an agreement to acquire LifeStorage L.P. The publically traded Sovran will reportedly acquire the privately owned LifeStorage for $1.3 billion. The self-storage REIT has secured $1.35 billion in bridge financing to ensure the deal’s 3Q2016 closing. However, Sovran, which operates under the brand name Uncle Bob’s Self Storage, indicated that it will permanently finance the transaction with proceeds from equity and debt offerings.
LifeStorage, headquartered in Roseville, CA, operates 92 self-storage properties in nine states. Upon the acquisition’s completion, the Buffalo, NY-based Sovran will own 84 LifeStorage stores, with a purchase contract for three additional certificates of occupancy deals to be delivered late this year and early next year. The acquisition allows Sovran to enter into several new markets, including Northern California and Las Vegas.