Teachers Insurance and Annuity Association (TIAA) advised by Nuveen Asset Management Europe has revealed an agreed takeover of Norway’s Self Storage Group (SSG) for €330 mln.
Five years ago, shares in the Oslo-headquartered company were passing hands for NOK 15. But they climbed to a peak of NOK 37.5 in January 2022 before slipping to NOK 22 this year.
SSG, which is backed by Centerbridge Partners, confirmed on Wednesday the offer represented a premium of 66.7% over the closing price of NOK 24 on 19 September and a premium of 65.1% over the average volume weighted share price adjusted for dividend during the last six months of NOK 24.2.
Alongside Centerbridge, other large investors incluce Fabian Holding, GSS Invest, and First Risk Capital, who have all accepted.
Investors such as TIAA view Europe as a relatively immature market when it comes to self-storage, yet the region presents an opportunity for them to take advantage of a resilient sector primed for further growth as it continues to institutionalise over the coming years.
Via Nuveen, TIAA first invested in 2021 through the acquisition of the Green Storage and 24Storage platforms in Sweden.
Over the last 18 months, the investor has worked on consolidating its two Swedish platforms under the Green Storage operating brand and grow via organic bolt-on acquisitions. But the company saw a way to speed up investment by taking over SSG, which operates 32,600 storage rooms in 142 facilities located in Sweden, Norway and Denmark under the City Self Storage and OK Minilager brands.
Mario Pello, head of TIAA General Account - Europe - at Nuveen Real Estate, said: ‘TIAA is a major owner of self-storage in the US and Europe, having invested in the sector for more than 20 years.’
‘In Europe, we have been actively monitoring the growth journey of the company for a long period of time given the high quality of the portfolio, the company's dominant positioning in the Norwegian market and strong synergies with our existing Swedish platform. Through the acquisition of the company, we will create a unique pan-Nordic platform with market-leading positions in Norway and Sweden - two of our high conviction markets - with scope to expand further into Denmark.’
Arctic Securities is acting as financial advisor and Advokatfirmaet BAHR is acting as legal advisor to TIAA/Nuveen, while ABG Sundal Collier is acting as financial advisor and Advokatfirmaet Schjødt is acting as legal advisor to SSG.
Fabian Søbak, CEO of SSG, said: ‘Having co-founded OK minilager in 2009 having identified a unique market opportunity for self-storage in the Nordics, I am extremely proud of the company's and the team's achievements. Through acquisitions such as City-Self Storage, Eurobox, Dit Pulterkammer and numerous asset transaction, as well as organic growth focus, we have together built a leading pan-Scandinavian self-storage company.’
‘Well supported by Centerbridge, we successfully leveraged our market leading position in Norway to accelerate growth across Scandinavia. I am confident that Nuveen and their Green Storage platform will be a good new owner for the company, and also provide an exciting opportunity for the great SSG team.’
Steven Skaar, chairman of the board, added: ‘The board believes the terms of the offer are in the best interests of Self Storage Group and our shareholders, and also benefitting our employees, customers and partners. The Board recommends the offer as it represents a fair valuation of the company.’