CubeSmart closes $1.69B self-storage acquisition

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CubeSmart has closed on its $1.69 billion purchase of the Storage West self-storage platform, adding 59 assets to its portfolio in the western markets of Southern California (22), Phoenix (17), Las Vegas (13), and Houston (7).

Two of the properties in Southern California are owned by
separate joint ventures, of which CUBE now owns a 50 percent interest.

“We are excited to officially welcome the Storage West
stores and the LAACO teammates to CubeSmart’s national platform. This accretive
transaction represented a unique opportunity to expand our footprint across
these rapidly growing top-40 MSAs,” commented Christopher P. Marr, President
and Chief Executive Officer. “I’m proud of our team’s ability to execute on our
strategic external growth objectives and look forward to successfully
integrating these stores onto our platform.”

The acquisition was funded using the net proceeds from a
combination of capital raising transactions, including the Company’s recent
offerings of 15,525,000 common shares, $550 million of unsecured senior notes
due in 2028, and $500 million of unsecured senior notes due in 2032.

Eastdil Secured served as exclusive financial advisor to
LAACO, Ltd. (LAACO), the owner of Storage West, on its sale to CubeSmart.

“This was a highly strategic transaction, and it underscores
the favorable fundamentals and strength of this industry,” said Kieran O’Shea,
Managing Director at Eastdil Secured. “With assets that continue to outperform
and relatively little capital expense requirements, we are seeing more diverse
buyers and increasing levels of capital moving into the space. At Eastdil
Secured, we have an experienced, global team that is involved in every detail
of every deal from beginning to end. Across the world, we are proud of our
decades of delivering results for clients and look forward to continuing to
provide the strategic advice and counsel our clients rely on us for to achieve
their objectives.”

The deal is the latest in a series of successful major
multibillion transactions Eastdil has advised on in the self-storage space,
including the three largest transactions in the sector in over a decade. This
includes the sale of ezStorage, which closed earlier this year, and Manhattan
Mini Storage, which is scheduled to close later this month.  The Manhattan Mini Storage also represents
New York City’s largest property sale since 2015.

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