Storage USA shareholders OK sale of 26%

June 06, 1996|By BLOOMBERG BUSINESS NEWS

Columbia-based Storage USA Inc. said yesterday that its shareholders approved a plan to sell a 26 percent stake in the self-storage property owner to Security Capital U.S. Realty for $220 million.

The company also said it named J. Marshall Peck, a managing director of a Security Capital affiliate, to its board.

Under the agreement, announced in March, Storage USA will sell 7.03 million shares to Security Capital at $31.30 each. After the sale is completed, the company will have about 27.4 million shares outstanding.

The company's stock closed up 50 cents at $34.375 on the New York Stock Exchange. The shares have risen 8.3 percent since the transaction was announced March 1.

The agreement gave Security Capital the right to name two directors to Storage USA's board. William Sanders, chairman of Security Capital parent company Security Capital Group Inc., has already been named a director.

Storage USA owns and manages 201 self-storage facilities in 25 states and the District of Columbia.

The investment gives Storage USA access to closely held Santa Fe, N.M.-based Security Capital's extensive data on property markets nationwide and the ability to raise capital without the help of Wall Street. It also aligns Storage USA with one of the nation's most successful real estate investors in Sanders.

Sanders is the former chairman and founder of international real estate services firm LaSalle Partners Ltd.

His Security Capital runs two publicly traded real estate investment trusts as well as other real estate assets.

Pub Date: 6/06/96

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