Blackstone to boost property portfolio with the acquisition of Simply Storage

A resilient property investment sector, self-storage looks particularly attractive during a global pandemic

Photo by Adam Winger on Unsplash

As people are on the move, working from home and vacating their homes in the city to live with relatives or find a quieter place outside of the City, Self-storage demand has seen an increase in demand.

This is not only for individuals, as businesses are considering using a more remote workforce, downscaling their office space and finding themselves in the need for storage units.

Self-storage as mentioned is a very strong and resilient sector. A “defensive” property investment sector if you will. And during the current global pandemic, it has proved again that it is still strong with demand increasing for units. These facilities are very attractive as they require little in capital expenditure, they have relatively low customer turnover rates and due to the small size of their tenant's monthly expenses, it is easy to raise rent annually.

This has attracted many to the industry that is mainly dominated by publicly traded companies like Public Storage. However, Blackstone has seen an opportunity to increase their market share.

Through the acquisition of Simply Storage.

Simply Storage is one of the largest private self-storage property companies, with properties across 120 locations, 23 states and boasting an impressive 8 million square feet.

The deal that is expected to be announced later on Monday 26 October, will conclude that Blackstone will purchase Simply Storage from Brookfield Asset Management for around $1.2 Billion.

The deal is attractive to Blackstone, as they are provided with the opportunity to increase their own self-storage investments in their portfolio with an already known brand and a full team that already manages the properties.

Simply Storage will form part of Blackstones non-traded real estate investment trust called BREIT. Blackstone hopes that the boost in self-storage exposure within the REIT will attract more investors into the fund and more investors for Blackstone overall.

--

--

--

Cloud Solution Provider. Passionate about cloud business efficiencies and security.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Ideas in the Wild: James L Cunningham, Jr Shares Common Estate-Planning Mistakes to Help Protect O

Diamond Buying Guide on a Budget

How Traders React When Hearing About Forex Live Contest?

Should empty restaurants be paying rent?

payday loans online $2000

We filed bankruptcy in 2001 and it was finalized in Feb 2003, Regarding 1099C?

Time value of money: Lotteries, growth and calculations

OVERCOMING YOUR INNER CRITIC: 4 TIPS FOR RECOVERING FROM TRADING LOSSES

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Cloud Analytix

Cloud Analytix

Cloud Solution Provider. Passionate about cloud business efficiencies and security.

More from Medium

ExlService Holdings, Inc.-The Buffettology Workbook

Is hydrogen the future of rail?

The Free Speech Gambit: What Elon Musk’s Twitter Moves Will Mean for Investors

Prepare your P&L to fight back the storm