Public Storage Joins Bidding for Centers

Glendale-based Public Storage Inc. has joined the bidding between Shurgard Inc. and U-Haul International Inc. for self-storage centers owned by seven Shurgard limited partnerships.

Public Storage offered $136 million cash for the Shurgard properties. The offer equals the value that real estate experts hired by Shurgard have put on them, Public Storage said.

Shurgard, a closely held Seattle company, said it was reviewing Public Storage’s offer and would respond to it within the next couple of weeks.

U-Haul of Phoenix, the big truck-rental firm, made a hostile $309-million tender offer for 17 Shurgard partnerships two weeks ago. The seven partnerships Public Storage has bid on are part of that same group of partnerships.

Shurgard formally rejected U-Haul’s offer last week. Instead, Shurgard is urging its investors to approve a proposal Shurgard made to them last month to “roll up,” or consolidate, the partnerships into a publicly traded real estate investment trust. The Shurgard prospectus values the assets of the 17 partnerships at $387.4 million.