Cole Credit Property Trust III, Inc. (Cole REIT III) announced this week that it had executed a definitive merger agreement to acquire Cole Holdings Corporation, a full-scale real estate investment management firm. Cole Holdings has been Cole REIT III's asset manager and sponsor company, and currently manages over $12 billion of real estate assets for over 160,000 individual investors represented by more than 13,000 financial advisors. According to investment bank Robert A. Stanger & Co. Inc., Cole REIT III is the second-largest in terms of its market cap, with close to $4.8 billion in equity raised from investors since it was launched in 2009.
Cole REIT III will change its name to Cole Real Estate Investments, Inc. upon completion of the transaction and will pursue a listing on the New York Stock Exchange. According to an Investment News article, Cole REIT III will make an upfront payment to management and Chris Cole, founder and executive chairman of Cole Holdings, of $127 million in cash and stock for the transaction.
"The real estate industry has been lagging behind in terms of the creation of full-service asset managers that can provide a comprehensive suite of products and services to distribution partners," said Chris Cole. "This transaction is the result of more than 30 years of work, and I am thrilled about the substantial growth potential and income generation that this combination will offer to all Cole Real Estate Investments stockholders."
Marc Nemer, president and chief executive officer of Cole Holdings, said, "We are confident that this transaction will accelerate our progress on these initiatives, generate greater value for all Cole Real Estate Investments stockholders, recognize the value proposition of the non-listed REIT industry and create a historic opportunity to participate in the next evolution of real estate asset management."
For more news and information visit Blumberg Capital Partners.
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