Summary
Public Storage (PSA) has completed a significant transaction involving its European operations. On March 31, 2008, the New York Common Retirement Fund (NYCRF) acquired a 51% stake in Shurgard European Holdings LLC (Shurgard Holdings) for approximately €383.2 million ($605.6 million). Public Storage retains a 49% ownership interest and will continue to manage the European self-storage business through its role as the managing member of Shurgard Holdings. This transaction marks a strategic shift, as Shurgard Holdings, which encompasses 173 self-storage facilities across seven European countries, will no longer be consolidated into Public Storage's financial statements. Instead, Public Storage's investment will be accounted for using the equity method. The filing also includes pro forma financial information reflecting this change, providing investors with a clearer view of the expected financial impact.
Key Highlights
- 1Completion of the sale of 51% of Public Storage's European operations (Shurgard Holdings) to the New York Common Retirement Fund (NYCRF).
- 2NYCRF paid approximately €383.2 million ($605.6 million) for its 51% stake.
- 3Public Storage retains a 49% ownership in Shurgard Holdings and will continue as the managing member.
- 4Shurgard Holdings owns 173 self-storage facilities across seven European countries.
- 5European operations will no longer be consolidated with Public Storage; equity method accounting will be applied.
- 6Pro forma financial statements are provided to illustrate the impact of the transaction.
- 7The transaction was finalized on March 31, 2008.