Nuveen buys second Swedish self-storage outfit for SEK 2.1bn

Nuveen Real Estate is to acquire 24Storage, the second largest self-storage operator in Sweden, hot on the heels of its acquisition of Green Storage.

Serving Sweden’s three main cities, Stockholm, Gothenburg, and Malmö, 24Storage owns 26 assets with a further four under development. The facilities comprise approximately 12,000 individual units.

24Storage is a publicly listed REIT on the NASDAQ First North Growth Market and Nuveen has acquired about 92.4% of of the company through unconditional share purchase agreements and the subsequent 29 November launch of a mandatory public tender offer to acquire the remaining shares  to ultimately take 100% control the company.

The acquisition is based on a share price of SEK 76 per share, equating to an enterprise value of approximately SEK 2.1 billion (c €205 million).

Nuveen likes focus on sustainability and technology

“The company has successfully built up a high-quality real estate portfolio in Sweden’s top three cities and we fully subscribe to their strong focus on technology and sustainability to drive operational efficiencies and provide a future-proofed storage solution,” said Jasper Gilbey, Nuveen’s head of TIAA general account and alternatives in Europe.

Nuveen acquired the 14-asset Green Storage last month and said in a statement that the acquisitions enable Nuveen to build a market-leading platform in Sweden, “underpinned by a high-quality portfolio of 44 assets and a highly experienced management team”.

The statement also explained that self-storage is considered one of the most attractive sub-sectors given the significant under-supply of modern space, proven resilience in times of volatility and scope to generate value through scale, the use of innovative technology and active management.

Arctic Securities acted as the investment advisor, Advokatfirman Schjodt acted as the legal advisors, RSM acted as the financial advisors and WSP acted as the technical advisors.