The Blackstone Group Inc – the largest alternative investment management firm in the world is looking to expand its horizons.
Rumor has it that the American firm has struck a deal with Brookfield Asset Management to purchase Simply Self Storage. According to the agreement, the first will pay $1.2 billion for a portfolio, which includes eight million-square-foot of self-storage facilities.
Experts believe this is a move made to put Blackstone on the map of firms that run storage facilities. Blackstone stated that it’s looking to acquire even more smaller assets in this industry and run them under the Simply brand.
Blackstone is placing its bets on a sector that showed strength even during the pandemic. Storage facilities are inviting for investors because they need little capital expenditures, and their rents can be lowered or raised, depending on the market.
The deal will be formally announced later today, October 26.
The Blackstone Group stock price ended the week down 0.24%. Brookfield stock price is set to open 0.41% lower.
Sources: foxbusiness.com, reuters.com