Press Release: Security Capital Group Incorporated
November 7, 2001
CHICAGO, IL -- Security Capital Group Incorporated (NYSE: SCZ) announced yesterday that Security Capital has proposed
a transaction to acquire the entire public interest in Storage USA, Inc. (NYSE: SUS - news). The proposal states
that the shareholders of Storage USA other than Security Capital would receive $42 in cash for each common share
of Storage USA. Storage USA, based in Memphis, Tenn., is a leading owner and operator of self-storage facilities.
Security Capital currently owns 43% of the outstanding Storage USA common shares. As proposed, the aggregate value
of the transaction would be approximately $1.8 billion, which includes the assumption of approximately $761 million
of debt and preferred stock.
Complete details of the proposal are included in an amendment to Security Capital's 13D relating to Storage USA
filed with the SEC.
Security Capital is a leading international real estate operating company. The company's current strategy is to
own all or a high percentage of six real estate businesses that function as private operating divisions and to
eliminate the discount to the underlying value of its assets. Security Capital currently has ownership positions
in 11 real estate operating businesses with combined assets of $17.7 billion, as well as a capital management division
with $2.4 billion of assets under management. The company plans to reposition or sell its investment in several
of these businesses and focus its capital in those that hold one of the top two market positions in their specific
niche and are able to create measurable brand value, as well as generate significant income from services and managed
capital. The principal offices of Security Capital and its majority-owned affiliates are in Atlanta, Brussels,
Chicago, El Paso, Houston, London, Luxembourg, New York and Santa Fe.
This press release contains certain statements that are neither reported financial results nor other historical
information. These statements are forward-looking statements within the meaning of the safe-harbor provisions of
the U.S. federal securities laws. These statements reflect the current views of Security Capital with respect to
future events and are not guarantees of future performance. Because these forward-looking statements are subject
to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the
statements. Many of these risks and uncertainties relate to factors that are beyond the company's ability to control
or estimate precisely, such as future market conditions, the behavior of other market participants, the actions
of governmental regulators and other risk factors detailed in Security Capital's reports filed with the Securities
and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of these materials. The company does not undertake any obligation to publicly release
any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.
SOURCE: Security Capital Group Incorporated