TORONTO--(Marketwire - November 19, 2010) - Strategic Storage Holdings, LLC (SSH) -- an affiliate of Strategic Storage Trust, Inc. (SSTI) -- the first and only publicly registered non-traded REIT specializing in the self storage industry -- has expanded into the Canadian market by entering into a term sheet for a joint venture with Toronto based Budget Development Partners, a developer and manager of self-storage properties. SSTI currently owns 40 self-storage properties in 15 states and continues to acquire new ones.
The venture will involve actively acquiring operational self-storage properties, as well as building new facilities or redeveloping existing industrial buildings throughout Canada. The sites will be rebranded under of the SmartStop (SM) Self Storage trade name.
"The Canadian market is underserved in self storage and will provide nice diversification in our aggregate portfolio," said H. Michael Schwartz, SSH's chairman and CEO. "This market has the same self-storage needs as the United States but is 10 plus years behind as far as supply. Their economy has been more stable in growth and commercial lending, which is a definite advantage for us. So it is natural that our first international expansion would be into Canada."
Budget Development Partners will be the exclusive developer and on-site sub-property managers for SSH in Canada, specializing in identifying self storage opportunities for acquisitions, and handling any site development and management, with SSH serving as the capital provider.
"The opportunities for self storage in Canada are enormous, but until now there has been a lack of interest or initiative on the part of many U.S. self-storage companies to cross the border," said Jamie Bennett, a Canadian native and senior partner with Budget Development. "Canadian operators don't have enough capital and American chains don't have a local presence to get things done. This venture fits right in the middle, poised to take advantage of this untapped market."
SSH will carry out the same successful business model in Canada as it has in the U.S. Loans are expected to be arranged through Canadian banks, with the Canadian dollar debt hedging some currency risk.
Budget Development has been active in the Canadian self-storage market for more than a decade, and sets itself apart by selecting only premium high-profile locations and providing exceptional customer service. Its assets in Canada have consistently ranked among the best in its portfolio.
"We've been structuring our company to take advantage of this underserved market for a long time. At the same time, we needed a relationship with a company that not only shared our vision but had the financial resources to create a large self-storage presence here," said Reade DeCurtins, a senior partner with Budget Development, who will be spearheading real estate acquisitions in Canada. "The venture with SSH is an ideal fit and will allow us to do just that."
About Strategic Storage Holdings, LLC. (SSH)
Strategic Storage Holdings, LLC (SSH) is a subsidiary of Strategic Capital Holdings, LLC (SCH). SCH manages a growing portfolio of over 6.6 million square feet of commercial properties, including 5 million square feet of self storage facilities, with a combined market value of over $704 million The SSH management team is comprised of industry veterans with extensive institutional experience in the acquisition and property management of self-storage properties. Our storage facilities are branded as SmartStop (SM) Self Storage throughout the country. SCH is the sponsor of the first and only public, non-traded REIT focused on self storage, Strategic Storage Trust, Inc.(SSTI). SSTI is one of five publicly registered self-storage REITs in the United States, and one of the fastest growing REITs nationwide.
To view our properties and locations or to find a nearby storage facility, visit www.smartstopselfstorage.com
About Budget Development Partners
Toronto-based Budget Development Partners was established in order to select quality sites for self storage, develop financing strategies for those sites, construct modern facilities, effectively manage those facilities and ultimately prepare them for disposition with their full value realized. The firm has active projects in Greensboro and Charlotte, North Carolina; Richmond, Virginia; Rock Hill, South Carolina; and London, Ontario.
For more information about Budget Development Partners, please call 704-607-2232 or visit www.budgetdevelopment.net
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to: uncertainties relating to changes in general economic and real estate conditions; uncertainties relating to the implementation of our real estate investment strategy; uncertainties relating to financing availability and capital proceeds; uncertainties relating to the closing of property acquisitions; uncertainties relating to the public offering of our common stock; uncertainties related to the timing and availability of distributions; and other risk factors as outlined in the Company's prospectus, as amended from time to time. This is neither an offer nor a solicitation to purchase securities.
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