Shurgard Big add-on acquisition in Germany

Shurgard announced the acquisition of Prime Self-Storage in Germany for EUR 100.0m (asset deal) that will add 24 kSqm at 7% yield. In our recent company note, we highlighted that additional M&A would continue during the Lock'nStore integration period till 2026. However, we counted on NL and FR for additions as GE already absorbed the Top Box's (Oct. 23) and the Pickens portfolio (Mar. 24). Now, SHUR reinforces its nr2 position in GE and will achieve the top spot by 2026 at the latest. Myplace reports 45 locations in GE with 8 in development. After this deal SHUR will operate 41 locations with 13 in development. The profitability of a platform like Shurgard depends on its market share and occupancy%. Shurgard aims to be a market leader in each of its markets. We believe the relative high valuation in the past was justified as SHUR delivered consistent above market growth from its platform through its development pipeline.