(Reuters) - Extra Space Storage Inc (EXR.N) said it has agreed to buy out its partner Prudential Real Estate Investors (PREI) from their joint venture ESS PRISA III LLC for $160 million in cash.
Prudential Real Estate Investors(PREI) owns about 94.9 percent of the joint venture, while Extra Space Storage owns the remaining.
ESS PRISA III LLC, a joint venture between the two companies, owns 36 self-storage properties in 18 states, operated under the Extra Space Storage brand.
The joint venture also has an outstanding loan of $145.0 million, due for repayment in August 2012. Including the loan, the cost of the acquisition is about $298.0 million, Extra Space Storage said in a statement.
Separately, Salt Lake City, Utah-based Extra Space Storage said it was offering 7 million shares of its common stock to fund the acquisition.
Shares of Extra Space Storage closed at $28.89 on Monday on the New York Stock Exchange. They have gained about a third of their value in the last seven months.
Reporting by Kartick Jagtap in Bangalore; Editing by Sreejiraj Eluvangal