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Strategic Storage Trust II Completes Merger with Strategic Storage Growth Trust

January 28, 2019

Strategic Storage Trust II Completes Merger with Strategic Storage Growth Trust

January 24, 2019 | James Sprow | Blue Vault

On January 24, 2019, Strategic Storage Trust II, Inc. completed its merger with Strategic Growth Trust, Inc., with Strategic Storage Trust II, Inc. being the surviving entity. Each of the outstanding shares of common stock of Strategic Storage Growth Trust, Inc. were converted into the right to receive $12.00 in cash, without interest and less any applicable withholding taxes.

Immediately prior to the REIT merger, all shares of common stock that were subject to vesting and other restrictions also became fully vested and converted into the right to receive the merger consideration upon the REIT merger. The merger consideration is expected to be paid to the Strategic Storage Growth Trust stockholders within 10 business days of the closing of the merger.

Related: Strategic Storage Growth Trust Shareholders to Receive $12.00 Cash Per Share in Merger

As a result of the merger, a change of control of Strategic Storage Growth Trust, Inc. occurred, with Strategic Storage Trust II, Inc. succeeding in control of the merged subsidiary. Strategic Storage Growth Operating Partnership was also to continue as a subsidiary of the Strategic Storage Trust II Operating Partnership.

The merger was approved in a vote by the shareholders on January 18, 2019. 

The merger constitutes a full-liquidity event for the common shareholders of Strategic Storage Growth Trust, Inc.  The REIT commenced its public offering on January 20, 2015, and raised an estimated $271.7 million, including DRIP proceeds, during the offering which closed March 31, 2017. The offering price of the common shares was $10.00, indicating a capital gain of 20% under the $12.00 per share terms of the merger. The most recently announced estimated NAV per share for its Class A and Class T shares was $11.58 as of December 31, 2017. 

Related: FIRST PERSON: SmartStop Asset Management's John Strockis on Student Housing Investments

Strategic Storage Growth Trust owned a portfolio of 29 properties in 10 states and Canada, with approximately 2,194,700 rentable square feet and approximately 19,840 storage units, all as of December 11, 2018. 

Sources:  SEC, Blue Vault, Strategic Storage Growth Trust

 

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