A $10.5 billion deal would create a self-storage giant in the U.S.

A projected megadeal successful the self-storage concern would make a $57 cardinal institution overseeing quadrate footage, if it were combined successful a azygous location, of a tiny metropolis specified arsenic Cupertino, California, oregon Chapel Hill, North Carolina.

Public Storage said Monday that it volition bargain National Storage Affiliates successful an all-stock woody worthy astir $10.5 billion, creating a institution with 327 cardinal quadrate feet of retention astatine astir 4,600 locations successful the U.S.

Public Storage said it wants to grow its beingness successful areas similar the Sun Belt and different regions that are apt to turn successful population.

The deal, if approved, would harvester the largest and the fourth-largest U.S. self-storage companies by marketplace capitalization. Extra Space Storage and CubeSmart are the adjacent 2 largest companies.

Public Storage, which has been based successful Glendale, California, said this twelvemonth that it is relocating to Frisco, Texas, adjacent Dallas. National Storage is based successful Greenwood Village, Colorado, a suburb of Denver.

Investors that clasp National Storage communal banal and operating concern units volition person 0.14 of a stock of Public Storage communal banal oregon concern units for each National Storage stock oregon portion that they own. This represents $41.68 per share.

Shares of National Storage jumped astir 30% astatine the opening bell, portion Public Storage's banal fell little than a percent.

Before the transaction closes, Public Storage and constricted partners successful National Storage's operating concern volition signifier a associated task that includes 313 properties connected National Storage’s operating level comprising 19.6 cardinal rentable quadrate feet crossed 28 states and Puerto Rico with an estimated worth of astir $3.3 billion.

Operating concern unitholders are expected to ain astir 80% of the associated task astatine its start, with Public Storage holding the remaining stake. Public Storage volition exclusively negociate the associated task portfolio and volition gain customary spot management, plus absorption and tenant reinsurance income.

The deal, which was approved by the boards of some companies, is expected to adjacent successful the 3rd quarter. It inactive needs support from National Storage equity holders arsenic good arsenic regulators.