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News release

HOUSTON and BERLIN

Self Storage Sale in Germany Represents New Benchmark in Cap Rate Compression

JLL closes sale of Project Horreum for US$75 million


HOUSTON and BERLIN, April 15, 2015 – Competition for self-storage real estate is crossing borders and in the latest case, investors are scooping up portfolios before they even hit the market. On behalf of Germany-based Secur Self Storage, JLL’s Capital Markets experts today announced the sale of Project Horreum, Germany’s first and only green self storage portfolio. Shurgard, the German operator for California-based Public Storage, purchased five of the eight properties and the business for US$74.5 million. The other three properties will be managed by Shurgard with the option to buy at a later date.
 
Managing Directors Steve Mellon and Brian Somoza led the JLL team on the transaction, while Managing Director Jörg Schürmann who is based in JLL’s Berlin office, represented the seller.
“Self storage assets are relatively scarce across Germany and this portfolio presented an ideal opportunity for Public Storage to increase its presence in Europe,” said Somoza. “Pre-emptive offers like this one prove that investors have a major appetite for self storage assets.”
 
Added Mellon, “This sale represents one of the lowest cap rates for self storage product in Germany - a true testament to investor confidence in this asset class.”
 
The portfolio features properties in Berlin, Hamburg and Hannover, totaling 518,000 square-feet and 9,481 individual units, each with their own alarm system.
 
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2013 alone, JLL Capital Markets completed $99 billion in investment sale and debt and equity transactions globally. The firm’s Capital Markets team comprises more than 1,300 specialists, operating all over the globe.
 
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About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $53.6 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.