All Storage working with CBRE on US$1b sale

New York

ALL Storage, a closely held owner of self-storage facilities, is exploring a sale of the company in which it could fetch more than US$1 billion, said people with knowledge of the matter.

The company, which operates 50 facilities in Texas and three in Oklahoma, is working with CBRE Group, said the sources, asking not to be identified discussing information that is not yet public.

The brokerage has begun soliciting interest from potential buyers, they said.

All Storage, led by chief executive officer Jay Schuminsky, did not immediately respond to a request for comment. A CBRE spokesman also did not comment by press time.

Fundamentals for self-storage real estate investment trusts (Reits) are favourable, KeyBanc Capital Markets analysts wrote in a note to clients this month, with occupancies, rental rates and growth in rents at or near record levels.

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Decluttering, death, divorce, dislocation and disaster continue to drive demand, Public Storage chief executive Joe Russell said at a recent conference.

The self-storage giant's shares have risen 42 per cent in the past year, outperforming the 33 per cent gain in the iShares Cohen & Steers Reit ETF. BLOOMBERG