National Storage to use proceeds of offering to fund capital contribution to JV
National Storage Affiliates Trust launches public offering of common shares to fund capital contribution to Joint Venture slated to acquire a $1.325B portfolio from Simply Self Storage. The company intends to initially use a portion of the proceeds from the offering to repay all of the borrowings outstanding under its revolving line of credit. The company expects to use the additional proceeds from the offering, together with amounts it expects to redraw from the Revolver, to make approximately $160.8M in capital contributions to, in exchange for a 25% ownership interest in, a joint venture with an affiliate of Heitman Capital Managementthat has been recently formed to acquire from Simply Self Storage, a portfolio company of a private real estate fund managed by Brookfield Asset Management, two REITs that own a portfolio of self storage properties for an aggregate purchase price of approximately $1.325B.The Portfolio consists of 112 self storage properties containing approximately 8.7 million rentable square feet, configured in over 68,000storage units and located across 17 states and Puerto Rico. Following the closing of the Acquisiton, the Company expects to rebrand nearly all of thePortfolio under its iStorage brand, and the Company's iStorage management platform will operate the properties.The Company also expects to use such net proceeds to fund $64.0 million in additional capital contributions to the JV to spin-out the six self storageproperties in the Portfolio located in Puerto Rico and a single self storageproperty in the Portfolio located in Ohio, which will be distributed by the JV to the Company immediately following the closing of the Acquisition.