Strategic Storage Trust VI, Inc. (SST VI) and Strategic Storage Growth Trust III, Inc. (SSGT III), two self-storage real estate investment trusts sponsored by affiliates of SmartStop Self Storage REIT, have agreed to combine in an all-stock merger that will create a self-storage platform with approximately $1.2 billion in total asset value.
Under the definitive merger agreement, SST VI will acquire SSGT III, bringing together two SmartStop-sponsored portfolios with significant holdings across the United States and Canada. The transaction is expected to strengthen the combined company's scale and operational footprint while expanding its development and investment pipeline.
The acquisition includes SSGT III's portfolio of 12 wholly owned self-storage facilities located across four U.S. states and three Canadian provinces. Those properties comprise approximately 9,215 storage units and roughly 1.0 million net rentable square feet. SST VI will also acquire SSGT III's 50% equity interest in three unconsolidated real estate ventures in British Columbia and Québec that are held with subsidiaries of SmartCentres Real Estate Investment Trust. The ventures include an operating self-storage facility in Laval, Québec, as well as two development sites in Victoria and New Westminster, British Columbia, that are expected to be completed in 2027.
In addition, the transaction includes SSGT III's beneficial interests in three Delaware Statutory Trust-sponsored programs encompassing eight self-storage facilities across five states, representing approximately 5,370 units and nearly 695,000 net rentable square feet.
Following the merger, the combined company is expected to own 37 wholly owned self-storage facilities totaling approximately 29,415 units and 3.2 million net rentable square feet, in addition to its joint venture interests and DST investments.
"This merger is a transformational step for both companies," said H. Michael Schwartz, President and Chief Executive Officer of SST VI and SSGT III. "By bringing SSGT III’s high-quality, growth-oriented portfolio together with SST VI’s existing assets, we are creating a combined company with a fair market value of over $1 billion. That scale meaningfully strengthens our competitive position, sharpens our operating efficiencies, and gives us a stronger platform from which to pursue future growth. We believe this combination also enhances our strategic flexibility and the potential long-term value of the portfolio as we continue to evaluate the best path forward for our stockholders. Because the SSGT III portfolio is already managed within the SmartStop platform, stockholders and customers can expect total continuity of operations throughout the process."
Under the terms of the agreement, SSGT III stockholders will receive one share of SST VI Class A common stock for each share of SSGT III common stock held. Upon completion of the merger, existing SST VI stockholders are expected to own approximately 59% of the combined company, while SSGT III stockholders will own approximately 38%. The remaining 3% will be held by other SST VI operating partnership unitholders.
Company officials said the merger is expected to provide several strategic benefits, including continued exposure to the self-storage sector, potential distribution growth for SSGT III investors, enhanced economies of scale, improved financing opportunities, and operational efficiencies driven by geographic overlap and the shared SmartStop Self Storage brand.
The transaction received unanimous approval from the boards of directors of both companies, as well as unanimous recommendations from their respective special committees of independent directors. The merger is expected to close in the fourth quarter of 2026, subject to approval by SSGT III stockholders and customary closing conditions.
The agreement does not require financing and does not require approval from SST VI stockholders. It does, however, include a 42-day "window shop" period that allows SSGT III's special committee to evaluate unsolicited acquisition proposals from third parties. During that period, SST VI retains customary matching rights, and the agreement includes a reduced termination fee should SSGT III accept a superior proposal.
The merger marks one of the larger consolidation transactions among non-listed self-storage REITs this year and further expands the SmartStop-sponsored platform's presence across North American self-storage markets.