Public Storage Forms Development Venture

Glendale-based Public Storage Inc. has formed a $220-million joint venture with a state pension fund to develop self-storage properties, according to a person familiar with the situation. The agreement, which is expected to be announced Monday, will cover the development of up to 60 self-storage properties over the next three years. It’s one of the largest development programs by any public real estate company. The unidentified pension fund, which is being advised by Heitman Capital Management Corp. of Chicago, will contribute $154 million to the venture. Public Storage will contribute $66 million and up to 25 facilities it currently has under development, the person said. Public Storage and Heitman couldn’t immediately be reached for comment. Public Storage is the largest U.S. owner and operator of self-storage properties. Shares lost 25 cents to close at $28 on NYSE.