Posted on 31 August 2013.
Phoenix, AZ (PRWEB) March 06, 2013
Cole Credit Property Trust III, Inc. (“CCPT III”) announced now which, based on the unanimous advice of the specialized committee of its board of directors, composed only of independent directors, it has executed a conclusive merger agreement, pursuant to that CCPT III can get Cole Holdings Corporation (Cole Holdings), a full-scale property investment administration fast which currently manages over $ 12 billion of property assets for over 160,000 individual investors represented by over 13,000 financial advisors. CCPT III might change its name to Cole Real Estate Investments, Inc. on completion of the transaction plus usually follow a listing found on the NY Stock Exchange (NYSE).
CCPT III is regarded as the biggest REITs focused found on the net-lease commercial property sector, plus following a listing, Cole Real Estate Investments will be the 2nd biggest publicly-traded REIT inside the net-lease sector. The acquisition of Cole Holdings offers CCPT III with both a proven administration team along with a full-scale property investment administration platform with over 350 employees, and a portfolio of over 2,000 qualities with over 76 million square feet of business property beneath administration. Additionally, the purchase better positions CCPT III to follow a listing found on the NYSE. The transaction is expected to be instantly accretive to CCPT IIIs funds from operations (FFO) plus to help an heighten inside the companys annualized dividend rate to $ 0.70 per share on closing. Upon a listing found on the NYSE, Cole Real Estate Investments is perfectly placed to achieve inclusion inside a range of indices over time, like the Russell 1000, Russell Midcap plus MSCI U.S. REIT Indices.
As consideration for the purchase of the premier property investment manager, CCPT III makes upfront repayments of $ 20 million inside cash, topic to change, plus 10,711,225 shares of CCPT III prevalent stock, and the following contingent amounts: (i) 2,142,245 shares of CCPT III popular stock following a listing found on the NYSE; plus (ii) more shares of CCPT III normal stock possibly payable inside 2017 because an earn-out contingent on the acquired company demonstrated financial achievement based about 2 criteria, the acquired company generating EBITDA above a minimal threshold plus CCPT IIIs stock performance relative to its peer group. The upfront stock consideration as well as the stock consideration on listing are topic to a three-year lockup with around one-third of the shares paid at closing introduced every year. The stock consideration payable inside 2017 is topic to a lock-up till December 31, 2017. Additional shares of CCPT III normal stock can be payable based about CCPT IIIs marketplace value over the 30-day period beginning six months following CCPT IIIs listing, pursuant to the present advisory agreement, however Cole Holdings has agreed, because element of the transaction, to a 25% reduction within the amount payable below the active advisory agreement, when any. The transaction is expected to close inside the next quarter of 2013, on the reassurance of customary closing conditions plus relevant regulatory approvals.
Leonard Wood, chairman of the specialized committee of the CCPT III board of directors, mentioned, We are happy to be capable to declare this exciting transaction, that delivers the stockholders the pros of having a leading property investment administration fast with meaningful development potential, when additionally improving funds from operations plus possibly improving stockholder liquidity. By adding the same fully-integrated administration platform which has been responsible for building plus acquiring CCPT IIIs asset portfolio, stockholders usually benefit within the continuity of the proven investment team which has effectively assembled plus managed among the biggest REITs focused found on the net-lease sector. Furthermore, CCPT III can strengthen its dividend payout plus intends to today follow the listing of its normal stock to achieve better liquidity plus superior access to the capital markets.
Christopher Cole, founder plus executive chairman of Cole Holdings, reported, For over a decade, a main approach inside the asset administration industry has been the creation of big, full-service companies with all the scale plus resources required to compete effectively inside a changing environment. The property industry has been lagging behind inside terms of the creation of full-service asset managers which could give a comprehensive suite of goods plus services to distribution couples. Through this compelling combination, you have the chance to understand the vision of creating a world-class property platform plus providing investors the pros of having top-quality, income-producing property leased lengthy expression to credit-worthy businesses. This transaction is the happen of over 20 years of function, plus I am thrilled regarding the significant development possible plus money generation which this combination might provide to all Cole Real Estate Investments stockholders. I look forward to continuing to function with Cole Holdings talented team to capitalize found on the immense chances which this exciting transaction might deliver to investors for decades to come.
Marc Nemer, president plus chief executive officer of Cole Holdings, reported, Creating a hot paradigm inside property asset administration which could offer financial advisors plus investors with sound investment tips plus innovative investment cars demands a confluence of many positive factors. With the effective combination announced now, you believe which the objective of being the premier, reliable brand inside property, plus many capable partner inside delivering best-in-class long-term results to the customers, is more attainable. Additionally, having better access to diversified capital sources plus money streams strengthens the position because you expand into unique customer bases plus provide more product innovation. We are confident which this transaction usually accelerate the progress about these initiatives, generate better value for all Cole Real Estate Investments stockholders, know the worth proposition of the non-listed REIT industry plus create a historical chance to engage inside the upcoming development of property asset administration.
The proposed transaction usually offer significant advantages to CCPT III stockholders, including:
����Proven Real Estate Management Platform: Cole Holdings might offer Cole Real Estate Investments with a leading property investment administration platform which attributes both conventional plus fee-based property investment goods. Since its founding inside 1979, Cole Holdings has built a proven, integrated administration team with in-house functions inside key regions of asset administration, acquisitions, leasing, financing, capital markets, customer service plus stockholder operations. As the most effective companies inside terms of distributing property investment solutions to retail investors, Cole Holdings is an appealing development company of significant size similar to most leading property plus alternative investment managers. The third-party investment administration company has appealing earnings plus capital appreciation potential while furthermore providing revenue diversification advantages to Cole Real Estate Investments.
����Management Continuity: Cole Real Estate Investments usually continue to benefit within the knowledge plus operational efficiencies resulting from seamless integration of the same property administration platform which has acquired plus managed the property assets of CCPT III because its inception.
����Accretive Transaction Providing an Increased Dividend: With a market-leading, diverse asset portfolio plus strengthened FFO, Cole Real Estate Investments is perfectly placed to deliver increased dividend development, supported, inside piece, by the expected accretion plus expected income development resulting within the purchase of a institutional-quality
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