SmartREIT and self-storage industry leader SmartStop Asset Management (SmartStop), have formed a joint venture to build and co-own rental self-storage facilities in Canada.
Typical facilities range from 75,000 to 125,000 square feet and include a mix of rental units in various sizes. With this strategic partnership, SmartREIT plans to further intensify its portfolio and generate additional funds from operations. There will also be opportunities to include leasable retail in certain locations. Two locations in the Greater Toronto Area have been confirmed and plans for multiple other locations are expected to be announced in the coming months.
“We view today’s third generation, multi-storey self-storage facilities as being a complementary use within and around our centres, requiring minimal land and parking, resulting in efficient rental income value creation,” said SmartREIT CEO Huw Thomas. “This strategic alliance is a logical step as we continue to intensify our shopping centres and unlock value in under-utilized parcels of land within our portfolio.”
“This joint venture gives SmartStop the opportunity to expand its existing 12-property portfolio in the Greater Toronto Area to other major metropolitan areas across Canada,” added SmartStop Founder and CEO H. Michael Schwartz. “By leveraging SmartStop’s existing online marketing expertise, institutional management, and revenue optimization systems, the partnership will provide growth for both SmartREIT and SmartStop.”