Storage Equities Offers to Trade 15% of Its Stock

Storage Equities Inc., a Glendale-based real estate investment trust, said it is offering to exchange up to 15% of its stock for units in three publicly traded limited partnerships affiliated with Public Storage Co.

The partnerships are Public Storage Partners VI Ltd., Public Storage Partners VII Ltd. and Public Storage Partners VIII Ltd. The units--which trade like shares of stock--of all three partnerships are listed on the American Stock Exchange.

In a filing with the Securities and Exchange Commission, Storage Equities said its offer to exchange up to 2.7 million newly issued shares for the units would result in Storage Equities acquiring up to 45% of each partnership. The shares have a current market value of about $25 million.

If all 2.7 million shares are issued, Storage Equities would have 17.7 million total common shares outstanding.

Harvey Lenkin, Storage Equities’ president, said his company launched the offer “to broaden its shareholder base, to increase the assets it owns . . . and for investment purposes.”

All of the entities have interests in self-storage warehouses operated as part of the Public Storage Co. chain. Also, the three partnerships’ general partners are PSI Associates II, a unit of Public Storage, and Public Storage Chairman B. Wayne Hughes.

Hughes also is chairman of Storage Equities, and an investor group he heads owns nearly 10% of Storage Equities’ stock, according to SEC records.