Large Platform Events | Issue 23.6

Summary of Transaction Headlines

Multi-Housing News| “Public Storage Makes $11 Billion Offer to Buy Life Storage”

Public Storage has made an unsolicited offer of $11 Billion to acquire Life Storage in an all-stock transaction. The public proposal comes after two similar, private bids were rejected in December and January. The offer comes at a time when despite the self storage sector still showing strong fundamentals a slowdown may be in sight due to economic headwinds. Founded in 1982, Life Storage currently operates approximately 1,200 self storage facilities encompassing more than 68 Million Square Feet across 37 U.S. states and the District of Columbia. Meanwhile, 1972-founded Public Storage has interests in 2,836 self storage facilities in 40 states, totaling approximately 202 Million rentable square feet, as of September 2022.

Bloomberg | “CVS Agrees to Buy Oak Street Health in $10.6 Billion Deal”

CVS Health Corp. agreed to buy Oak Street Health Inc. in a $10.6 Billion deal that further integrates primary care into the health-care conglomerate, positioning it to take advantage of a shift in how medical care is paid for. The drugstore chain is paying $39 a share in cash for the Chicago-based company at an equity value of $9.47 Billion, according to a statement Wednesday, confirming an earlier Bloomberg News report. The deal will be funded through available resources and existing financing capacity, CVS said, and is expected to close this year. CVS shares rose 4.8% at 11:42 a.m. in New York, while Oak Street gained 4.9%.

The Wall Street Journal | “Brookfield to Sell Florida Resort for $835 Million in Largest U.S. Hotel Sale of Pandemic”

A pair of investors has agreed to pay $835 Million for the Diplomat Beach Resort in south Florida, a deal that would represent the biggest U.S. hotel sale during the Covid-19 pandemic period. Trinity Investments, the Honolulu-based real estate investment firm, and Credit Suisse Asset Management, have agreed to buy the Hollywood, Fla., hotel in a deal that could close as soon as Friday, according to people familiar with the matter. A sale of the 1,000-room oceanfront property would be the latest sign that resorts and Florida resorts in particular remain in high demand. It would also be a big bet that corporate group travel can continue to gain momentum.

Property Week | “Wates Group Names O’Lionaird as New CEO”

O’Lionaird takes over after former chief executive David Allen left the family-owned firm last July, leaving the interim position held by chief financial officer Philip Wainwright, who now returns to that role. Allen, who was considered a key driver of strong recent performance for Wates Group, which delivered a record operating profit of £40 Million in its last annual results, is now finance director of retailer Mace Group.