Press Release
January 17, 2001
SEATTLE, WA -- Shurgard Storage Centers, Inc. (NYSE:SHU), a leading self-storage real estate investment trust (REIT),
today announced that the development joint venture it entered into with affiliates of JP Morgan Partners (``JPMP''),
acquired 21 properties developed by Shurgard during 2000.
The JPMP-Shurgard joint venture acquired the properties on December 29, 2000. General Electric Capital Corporation
provided non-recourse acquisition financing in the amount of $67.7 million. The joint venture funded the acquisitions
through the GECC loan together with equity contributions of approximately $36 million and $9 million, from JPMP
and Shurgard, respectively. Total construction cost of the 21 properties, upon construction completion, is approximately
$112.8 million. Shurgard used proceeds obtained from contribution of the properties to the joint venture to pay
down its line of credit and for other general corporate purposes.
According to Shurgard's Chairman, Chuck Barbo, ``Development of the highest quality self-storage centers has long
been a source of competitive advantage for Shurgard. Joint venture relationships such as the one we have with JPMP
have been integral to the continuing success of Shurgard's plan of growth through development. JVs have offered
many advantages during periods when other sources of capital were unavailable to REITs. We also benefit because
our partners at JPMP bring a lot of valuable real estate experience to the joint venture in addition to their investment.''
Patrick Sullivan, Partner of JPMP, commented, ``We are excited about the completion of our joint venture with Shurgard.
We believe that we have acquired an attractive portfolio of self-storage assets located in strong markets.''
Anthony Juliano, Vice President -- Capital Markets, GE Capital Real Estate, praised the JPMP/Shurgard announcement:
``These two blue-chip companies are exactly the kind of organizations GE Capital likes to partner with. They display
strong leadership in a high-potential, growth sector of the real estate marketplace. We are proud to be a part
of this winning combination.''
About Shurgard Storage Centers, Inc.
Shurgard Storage Centers, Inc. is a fully integrated, self-administered, self-managed real estate investment trust
(REIT) headquartered in Seattle, Washington. The Company specializes in all aspects of the self-storage industry
and operates a network of over 411 storage centers located throughout the United States and Europe. Shurgard is
followed by security analysts at leading institutions. For additional information visit www.shurgard.com
or refer to the Company's Form 8-K filed with the SEC.
About J.P. Morgan Partners
J.P. Morgan Partners (JPMP), formerly Chase Capital Partners, is a global partnership with approximately $24 billion
under management. It is a leading provider of private equity and has closed over 1,600 individual transactions
since its inception in 1984. JPMP has approximately 150 investment professionals in seven offices throughout the
world. JPMP's real estate group has invested $600 million in real estate ventures over the past three years. Its
primary limited partner is J.P. Morgan Chase & Co., one of the leading financial institutions in the United
States. For additional information, please visit JPMP's website at www.jpmorganpartners.com
.
About GE Capital Real Estate
GE Capital Real Estate, www.gecapitalrealestate.com, headquartered
in Stamford, Connecticut, is one of the industry's leading global sources for commercial real estate capital through
structured finance, equity and capital markets products with a portfolio of over $19 billion.
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Contact:
Shurgard Storage Centers, Inc.
Jeffrey Scott Szorik
Harrell Beck
206/652-3702