(Corrects price range to 23-28 euros)
BRUSSELS, Oct 1 (Reuters) - Shurgard Self Storage will raise up to 575 million euros ($666 million) in a stock market listing on Euronext Brussels, the company said on Monday.
Shurgard, Europe’s largest provider of storage for consumers and small businesses, said the offering would be made through a private placement of between 20.5 million and 25 million shares, valuing it at 2.0 billion to 2.4 billion euros.
The affiliate of U.S.-based real estate investment trust Public Storage, will use the funds to repay borrowings, including a 200 million euro bridge facility, to finance a planned acquisition of a store in Kensington, London. It will also use the cash for future growth.
Its focus is on strengthening its position in urban areas, in particular London, Paris and Berlin. It already has 228 storage centres in seven countries.
The indicative price range is 23 to 28 euros per share.
The offer period will run until Oct. 11, with the final offer price established on Oct. 12. and listing provisionally set for Oct. 15.
BNP Paribas, J.P. Morgan Securities and Societe Generale are joint global coordinators and joint bookrunners, with HSBC Bank and Kempen & Co also joint bookrunners.
The offering of up to 575 million euros, includes an over-allotment option of 75 million euros.
Shurgard expects European demand to continue to grow from residential and business customers, due to factors including increased urbanisation and a related decrease in housing space, population mobility and growth of new online retailers.
It also expects Europe to make up some of the gap with the United States, where there is 0.878 metres of self-storage per person, 49 times more than in Europe.
Shurgard made a revenue of 239 million euros in 2017 and a core profit (EBITDA) of 135 million euros.
$1 = 0.8638 euros Reporting by Philip Blenkinsop Editing by Edmund Blair