8-KMaterial AgreementsExhibits & Filings

Extra Space Storage Inc. 8-K Report, Material Agreement (May 11, 2005)

Filed May 11, 2005For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) announced a significant strategic acquisition on May 5, 2005, by entering into a Purchase and Sale Agreement to acquire the Storage USA self-storage business from GE Commercial Finance for approximately $2.3 billion in cash. This transaction, which involves Extra Space Storage LP and various accounts and funds advised by Prudential Real Estate Investors, represents a substantial expansion for the company. The acquisition encompasses a portfolio of self-storage properties and associated business entities, positioning EXR for considerable growth and market share enhancement in the self-storage sector. In addition to the main acquisition, Extra Space Storage LP will concurrently make a cash offer of approximately $42 million to purchase the interests of third-party limited partners in SUSA Partnership, L.P. This offer includes an option for qualified limited partners to receive units of limited partnership interest in EXR instead of cash. The filing details customary representations, warranties, and closing conditions for such a large transaction, including provisions for liquidated damages of $70 million under specific termination scenarios. Investors should note that this acquisition is a pivotal event for the company, signaling aggressive expansion and a significant increase in operational scale.

Key Highlights

  • 1Announced a definitive agreement to acquire the Storage USA self-storage business from GE Commercial Finance for approximately $2.3 billion in cash.
  • 2The acquisition is structured as a purchase of various entities comprising the Storage USA business.
  • 3The transaction involves Extra Space Storage LP and investment vehicles advised by Prudential Real Estate Investors.
  • 4Concurrent offer to purchase limited partner interests in SUSA Partnership, L.P. for approximately $42 million, with an option for EXR units.
  • 5The agreement includes customary representations, warranties, and closing conditions for a transaction of this magnitude.
  • 6Potential liquidated damages of $70 million stipulated in the agreement under specific termination circumstances.
  • 7This acquisition marks a substantial expansion and increase in scale for Extra Space Storage Inc.

Frequently Asked Questions

This Form 8-K filing announces Extra Space Storage Inc.'s entry into a material definitive agreement to acquire the Storage USA self-storage business for approximately $2.3 billion. It provides key details about the acquisition, including the seller, the purchase price, and the parties involved.

Extra Space Storage is acquiring the Storage USA self-storage business from GE Commercial Finance.

The acquisition is valued at approximately $2.3 billion in cash.

Yes, Extra Space Storage LP will concurrently offer to purchase the interests of third-party limited partners in SUSA Partnership, L.P. for approximately $42 million in cash, with an option for qualified limited partners to receive units of limited partnership interest in the Company.