* To acquire Prudential Real Estate Investors' 94.9 pct
* To pay $160 mln in cash
* To complete the acquisition in July 2012
April 16 Extra Space Storage Inc said it
has agreed to buy out its partner Prudential Real Estate
Investors (PREI) from their joint venture ESS PRISA III LLC for
$160 million in cash.
Prudential Real Estate Investors(PREI) owns about 94.9
percent of the joint venture, while Extra Space Storage owns the
ESS PRISA III LLC, a joint venture between the two
companies, owns 36 self-storage properties in 18 states,
operated under the Extra Space Storage brand.
The joint venture also has an outstanding loan of $145.0
million, due for repayment in August 2012. Including the loan,
the cost of the acquisition is about $298.0 million, Extra Space
Storage said in a statement.
Separately, Salt Lake City, Utah-based Extra Space Storage
said it was offering 7 million shares of its common stock to
fund the acquisition.
Shares of Extra Space Storage closed at $28.89 on Monday on
the New York Stock Exchange. They have gained about a third of
their value in the last seven months.