European self-storage property specialist Shurgard has announced the launch of a share capital increase in cash for an amount of €300 mln.
The proceeds will be used to fund the growth of the company’s portfolio via both organic and M&A opportunities, with targeted delivery of at least 90,000 m2 per year as from 2024.
‘Our pipeline has increased in Q3 to 194,258 m2 or €483 mln of direct project costs. We have built a solid M&A pipeline,’ the company said in a statement.
The proceeds are expected to be deployed over the next months, primarily to fund acquisitions and development in the company’s core geographies of Germany, London, Paris and Randstad.
Public Storage Group, a reference shareholder of Shurgard, will participate in the capital raise pro-rata of its current stake (35.08% of the capital). The operation will automatically increase the company’s free-float, from 28.4% to up to 31% (representing an increase of around 10%), given that New-York Common Retirement Fund will not participate in the capital raise.
BNP Paribas Fortis and JP Morgan Securities are acting as Joint Global Coordinators and Joint Bookrunners. ABN Amro (in cooperation with ODDO BHF), Belfius Bank (in cooperation with Kepler Cheuvreux), Goldman Sachs International and KBC Securities are acting as Joint Bookrunners.
Marc Oursin, Shurgard Chief Executive Officer, commented: ‘We are delighted to come back to the equity markets to continue to fund our growth via acquisitions and developments. The pipeline of future new footage is developing strongly and has reached 14.5% of our total lettable area. The net proceeds will allow us to continue our expansion mainly in Germany, London, Paris and Randstad.’'