Abacus cuts ties with Storage King
Abacus Group has exited Storage King – selling its 19.6 per cent stake for $284.8 million as it focuses on a diversified commercial property portfolio.
Ki Corporation, backed by South African billionaire Nathan Kirsh, is buying 10.37pc for $163.5m or $1.20 per security.
Ki and US giant Public Storage tried to buy Storage King outright last year, initially offering $1.47 per security before raising it to $1.65, valuing Abacus Storage King at about $2.2 billion. The bid was withdrawn after due diligence.
Abacus’ remaining 9.23pc will be sold to institutions at $1 per security.
Proceeds will repay debt, cutting gearing to about 30 per cent.
The sale follows Storage King’s June internalisation of its management from Abacus, ending a long-standing relationship (continues below).
Abacus said the stake was no longer core to its strategy.
It is now concentrating on its commercial portfolio, particularly Sydney and Brisbane offices.
That repositioning comes as Charter Hall builds its position in Abacus, after first emerging as a substantial shareholder in April.
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