Australia’s largest self storage REIT National Storage now finds themselves in a bind. It was only about one month ago that the REIT’s investors had their hands full with offers from three potential players, Warburg Pincus, Hong Kong's Gaw Capital Partners, and the United States’ Public Storage.
The former two both tabled conditional offers earlier in the month, putting Public Storage in a prime spot for a potential deal valued at about $1.3 billion US currency. In a Feb. 14 filing with the U.S. Securities and Exchange Commission (SEC), Public Storage confirmed its bid for National Storage.
Public Storage initiated the offer to buy the large storage REIT at $2.40, but March's shares were dropping quick, diluting their offer.
That led to the mid-march report last week stating that the US REIT has backed out of the race, citing sudden change in market conditions.
Market volatility stemming from the global coronavirus outbreak has been ascribed as the cause.
Source: BusinessNewsAustralia, Mingtiandi, Fool, Reuters
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