06 Dec 2021
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Nuveen Real Estate to acquire 24Storage in SEK 1.1BN public-to-private transaction as it expands European Self-Storage platform
- SEK 1.1BN public-to-private deal sees Nuveen Real Estate, acquire 30 new assets across Sweden’s three largest cities
- Nuveen expands Swedish self-storage presence which now includes 24Storage and recently acquired Green Storage portfolios to create [one of] Sweden’s largest self-storage platforms
- Expanded self-storage platform provides scope for European expansion as Nuveen Real Estate targets growth in alternative real estate assets market
Nuveen Real Estate, one of the largest real estate investment managers in the world, is to acquire 24Storage, the second largest self-storage operator in Sweden and a publicly listed REIT on the NASDAQ First North Growth Market.
Nuveen has acquired c.92.4% of 24Storage via unconditional share purchase agreements and the subsequent launch on 29 November 2021 of a mandatory public tender offer to acquire the remaining shares (and votes) to ultimately take 100% control of 24Storage. The acquisition is based on a share price of SEK 76 per share, equating to an enterprise value of approximately SEK 1.1BN.
24Storage is the second largest self-storage platform in Sweden with 26 operational assets and a further four assets under development. The assets are centred around Sweden’s three major cities of Stockholm, Gothenburg, and Malmö and comprise approximately 12,000 individual units.
The acquisition of 24Storage follows the recent acquisition of the 14-asset Green Storage platform last month. The acquisitions enable Nuveen to build a market-leading platform in Sweden underpinned by a high-quality portfolio of  assets and a highly experienced management team. In addition, both platforms benefit from very complimentary strategies with a location-driven focus, digitalised operational platform and pioneering sustainability credentials.
Nuveen, which is actively seeking to expand its exposure to alternative real estate assets globally, is focusing on the European self-storage market as one of the most attractive sub-sectors in the alternatives space given the significant under-supply, proven resilience and scope to generate value through scale, technology and active management. There are more than 10 times the amount of self-storage facilities in the United States compared with Europe and the fragmented nature of the European markets offers significant consolidation potential.
Jasper Gilbey, Head of the TIAA General Accounts real estate portfolio in Europe at Nuveen, said: “We are delighted to be acquiring 24Storage – the second largest self-storage operator in the Swedish market. The Company has successfully built up a high-quality real estate portfolio in Sweden’s Top 3 Cities and we fully subscribe to their strong focus on technology and sustainability to drive operational efficiencies and future-proof the strategy.
The privatisation of a high profile listed company reinforces Nuveen’s ability to access interesting investment opportunities in both the public and private markets while also demonstrating our commitment to grow our self-storage footprint across Europe. The combined portfolio with Green Storage will create a market-leading platform in Sweden with significant synergies and growth potential in the coming years.”
In connection with the acquisition, Arctic Securities acted as the investment advisor, Advokatfirman Schjodt acted as the legal advisors, RSM acted as the financial advisors and WSP acted as the technical advisors