Global Self Storage to Acquire Tuxis Facilities
- Nov 28, 2016
New York—Global Self Storage has signed an agreement with Tuxis Corp. to purchase a 185-unit, 25,705-square-foot self-storage facility in Clinton, Conn., a 142-unit, 15,000-square-foot self-storage facility in Millbrook, N.Y., along with an adjoining 1,875-square-foot commercial property.
The aggregate purchase price of $7.8 million includes $5.9 million in cash, $975,000 of Global Self Storage common stock, and, contingent upon the satisfaction of certain conditions described in the purchase agreement related to the expansion of the Millbrook self-storage facility, an additional $900,000 cash payment.
Tuxis Self Storage at Heritage Park, in Clinton, Conn., offers a mix of standard and climate-control units, while Tuxis Self Storage at Millbrook Commons is a mixed-use facility consisting of climate-control self-storage units, including wine storage bins, and rental office space.
“Both of these facilities fit our current acquisition criteria as they are performing well and located in secondary and/or tertiary cities where new development is muted,” Mark Winmill, president & CEO of Global Self Storage, said in prepared remarks. “After a thorough review and evaluation by a special committee of independent directors, we believe these two stores will be very complementary to our existing portfolio of self-storage facilities.”
Winmill also serves as president, CEO & director of Tuxis Corp., which is a self-storage and real estate development company, as well as a Global Self Storage affiliate.
The closing of the acquisition is subject to certain conditions, including approval by Tuxis stockholders. If approved, the transaction “would allow Tuxis to pursue other real estate development and management opportunities,” Winmill added.
Image courtesy of Tuxis Corp.