US self-storage company Shurgard Storage Centers is to buy the equity stakes in its European business held by America’s AIG and Deutsche Bank, raising its interest in the overseas operations to 80.6%.
Seattle-based Shurgard will pay €32.3m for AIG’s 7% interest in Shurgard Europe and €58.3m for Deutsche Bank’s 12.8% stake. Deutsche Bank, AIG and another institutional partner bought the 43.25% interest in Shurgard Europe not held by Shurgard in 1999. AIG paid €20.4m for its stake and increased its commitment by €2m in 2001.
Last month Shurgard formed a €148m joint venture with Crescent Euro Self Storage Investments, which is controlled by the Bahrain-based First Islamic Investment Bank, to develop 25 storage centres across Europe. The joint venture, First Shurgard SPRL, will be funded with equity of €50m from Crescent and €12.5m from Shurgard, with another €85m coming from a consortium of banks.
