U-Storage & Extra Space Storage
Selected Transactions – Mexican Company and International Publicly Traded Company: U-Storage & Extra Space Storage (NYSE: EXR)
Background
- Mexican market leader in self-storage facilities with aggressive expansion plans looking for an experienced partner that could share its international knowledge of the industry, name recognition and best practices
PC Capital’s Role
- Determined the value of U-Storage’s existing portfolio as well as the appropriate cost of capital for the industry in Mexico
- Presented a valuation analysis to the company and the potential partner that served as a basis for negotiating a capitalization for U-Storage’s expansion plan
- Conducted valuation analysis and presented transaction recommendations to shareholders
U-Storage’s partnership with Extra Space Storage created the industry’s largest and most experienced competitor in Latin America
Results
- Creation of the country’s largest self storage player in partnership with the second most important self-storage developer in the world
- Acquisition of a minority position in U-Storage under attractive conditions for the investors and the company
- Acquisition of best practices
- Creation of an expansion plan with an investment of more than US$ 400MM for the development of 50 new facilities