Shurgard Self Storage withdrew its offer to purchase 24Storage after financial-services firm Teachers Insurance Annuity Association of America (TIAA) increased its bid to SEK 76 per share. TIAA, bidding through Sweden affiliate T-C Storage BidCo AB, initially offered SEK 62 per share on November 8th before Shurgard made a larger offer. T-C Storage has agreed to buy 92.38% of 24Storage outstanding shares and set an acceptance deadline of December 13th, according to a press release.
“The offer from TIAA validates Shurgard’s interest in 24Storage and underpins the strong investor interest in self-storage assets,” Shurgard officials said. “Shurgard remains committed to generating value for all its stakeholders, and this does not change Shurgard’s interest or strategy to grow Shurgard in Sweden, where Shurgard continues to remain the largest self-storage operator by square meter.”
The 24Storage Bid Committee won’t issue a new recommendation regarding the T-C Storage offer due to conflicts of interest among committee members, 24Storage officials said.
TIAA affiliate Nuveen Real Estate acquired the Green Storage portfolio in Sweden earlier this month. TIAA created T-C Storage in June as a Swedish limited liability company specifically to make the 24Storage bid, according to a TIAA press release.
Founded in 1918, TIAA offers investment options across different asset classes including real estate and other specialized portfolios. Its investment platform, TIAA General Account, has invested in a diversified portfolio of $283 billion in assets, with more than $48 billion invested in real estate. Nuveen and its branded affiliates manage TIAA’s capital, with approximately $1.2 trillion in global assets under management. Nuveen has about $1.5 billion in self-storage assets under management in Europe and the United States. It will serve as the investment adviser to T-C Storage, the release stated.
