Strategic Storage Secures $164.5M Loan for Canadian Expansion
The financing, backed by properties in Toronto and Vancouver, will help the company refinance existing debt.
March 14, 2025
Strategic Storage Trust VI, Inc. has locked in CAD $164.5 million in financing to support its Canadian operations. The loan, structured with QuadReal Finance LP as the servicer and its affiliates as lenders, strengthens the company’s financial position while providing flexibility for future growth.
Secured by Key Canadian Properties
The loan is secured by seven self-storage properties—six in the Greater Toronto Area and one in Vancouver. The company has already accessed CAD $147.0 million, with an option to draw an additional CAD $17.5 million if it meets specific financial targets.
The five-year facility carries a fixed 5.59% annual interest rate for the initial advance, while the second portion will be tied to the Canadian Overnight Repo Rate Average with an added adjustment.
Debt Repayment and Financial Terms
A large portion of the proceeds went toward repaying existing loans with the Bank of Montreal and National Bank of Canada. The agreement also includes standard financial covenants and conditions, with Strategic Storage Trust VI serving as a non-recourse guarantor.
The company has provided a debt service guarantee, which could be lifted after meeting a required debt service ratio for two consecutive quarters.
Positioning for Growth
This financing move supports Strategic Storage’s ongoing efforts to manage its capital efficiently while reinforcing its position in key Canadian markets.
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