Public Storage and Ki Team Up for Strategic Bid on Abacus Storage King
Public Storage (NYSE: PSA) and Ki have submitted a non-binding indicative proposal to acquire Abacus Storage King (ASX: ASK) at A$1.47 per stapled security.
Acquisition Intent Announced
Public Storage (NYSE: PSA) and Ki have submitted a non-binding indicative proposal to acquire Abacus Storage King (ASX: ASK) at A$1.47 per stapled security. The offer excludes securities already held by the Ki Group, ASK’s largest shareholder. Upon completion, both Ki and Public Storage would each own approximately 50% of the company.
Abacus Storage King currently manages a portfolio of 126 stabilized properties, 21 under development, and 75 either managed or licensed across Australia and New Zealand. The proposed price reflects a premium for minority investors, recognizing the region's robust fundamentals such as population growth and increasing demand for storage services.
Strategic Rationale and Market Outlook
The partnership seeks to harness Public Storage’s deep operational expertise to boost customer experience, streamline performance, and drive portfolio expansion. With the self-storage market in Australia and New Zealand still highly fragmented, significant consolidation opportunities remain. Public Storage already operates 3,380 self-storage facilities in 40 U.S. states and holds a 35% stake in Shurgard Self Storage in Europe, making this an important step in strengthening its global presence.
The combined portfolio's blend of stabilized, development, and managed sites offers both immediate revenue and strong long-term growth prospects. Structuring the deal as a joint venture with Ki helps reduce execution risk and allows Public Storage to implement its proven operational systems, as it has successfully done in Europe through Shurgard.
Early Stage Discussions and Approval Process
The offer remains preliminary and is subject to several conditions, including due diligence and approval from ASK securityholders. There is no assurance that a definitive agreement will be finalized or that the transaction will proceed. Public Storage has indicated it will not issue further updates unless and until a binding agreement is reached.
Goldman Sachs is acting as financial advisor to the consortium. Ki is being represented by Herbert Smith Freehills and Sullivan & Cromwell, while Public Storage is receiving counsel from Gilbert + Tobin and Wachtell, Lipton, Rosen & Katz.
