Blackstone to sell Simply Self Storage to Public Storage for $2.2bn

• Eastdil Secured served as financial advisor to Public Storage
• Wells Fargo and Newmark Group, Inc. served as lead financial advisors to BREIT with BMO Capital Markets and Sumitomo Mitsui Banking Corporation also serving as financial advisors
• Blackstone’s real estate business was founded in 1991 and has approximately $333 billion in investor capital under management

Public Storage has agreed to acquire Simply Self Storage from Blackstone Real Estate Income Trust for $2.2 billion.

Based in Glendale, California, Public Storage is a REIT that primarily acquires, develops, owns, and operates self-storage facilities.

On the deal, Nadeem Meghji, head of Blackstone Real Estate Americas, said in a statement, “Where you invest matters, and this transaction demonstrates the strong investor demand for the high-quality assets and platforms we have assembled within BREIT. This sale is a terrific outcome for BREIT stockholders and enables us to further concentrate BREIT’s portfolio in its highest growth sectors. Public Storage is a leader in its space and will be a terrific steward of this portfolio.”

The acquisition is currently expected to close in the third quarter of 2023.

According to a source at Blackstone, the sale will generate over $600 million in profit. Also, with this transaction, BREIT has sold or has under contract $12 billion of real estate on average above carrying values.

Eastdil Secured served as financial advisor to Public Storage, and Wachtell, Lipton, Rosen & Katz and Hogan Lovells US LLP acted as legal advisors. Wells Fargo and Newmark Group, Inc. served as lead financial advisors to BREIT, and BMO Capital Markets and Sumitomo Mitsui Banking Corporation also served as financial advisors. Simpson Thacher & Bartlett LLP acted as BREIT’s legal advisor.

Blackstone’s real estate business was founded in 1991 and has approximately $333 billion in investor capital under management.