Canadian based self storage firm StorageVault recently entered into a purchase agreement worth a little over $51 million with Access Self Storage Inc. and Cubeit Portable Storage Canada. StorageVault will purchase all rights and assets to Cubeit Portable Storage and nine self storage facilities that are owned and operated by Access Self Storage Inc.
According to a press release issued by the company, the transactions will occur in two tranches. At the end of the first tranche, StorageVault will secure four self storage locations that consist of approximately 1, 500 rental units, which cover 133, 000 square feet of rentable space. In addition to that, the company will also take over all of Cubeit’s portable storage business as well as the rights to operate in Canada. When the second tranche has been closed, StorageVault will get five self storage facilities which span about 250, 000 square feet of rentable space.
The first tranche will run StorageVault around $25, 575, 000 while the second will close at $25, 700, 000. Both tranches are set to be completed before February 2, 2015. Other terms of the purchase agreement include the reconstruction of the Board of Directors of Storage Vault to include Alan Simpson, one nominee of PFM Capital Inc. and three nominees of the vendors.
The purchase agreement also outlined a five-year business plan, which is meant to enhance the possibility of future acquisitions of Access’ assets by StorageVault. The five-year plan however does not mandate that any future acquisition of Access’ assets must occur.