SmartStop agrees a conditional joint venture in a 14-property Canadian storage fund

SmartStop Self Storage REIT has agreed a conditional joint venture with ICM Bluebird Canadian Self Storage LP, committing up to $300 million in capital, ICM Bluebird said in a September 29 release, as Inside Self Storage also reported. The release does not state a currency. ICM Bluebird says the fund is to be renamed Strategic Storage Canada LP and that SmartStop will take over property management from Bluebird Self Storage.

SmartStop describes a fund of 14 properties with roughly 9,600 units and 961,000 square feet of rentable space, in early lease-up and about 50% physically occupied. It says the deal expands its presence in Vancouver, Calgary and the Greater Toronto Area and adds Halifax and Quebec City.

SmartStop says it takes a 50% general partner interest and about 34% of the limited partner interests, for an investment of approximately CAD $74 million. SmartStop also gets five-year management contracts and a right of first offer on the fund’s properties, and has the opportunity to invest up to a further CAD $228 million.

SmartStop expects to close in the fourth quarter of 2026, subject to Competition Act approval and customary conditions. ICM Bluebird adds that approval from certain existing lenders is also required. SmartStop says it anticipates a stabilized yield above 6% as the properties lease up.