PHOENIX — Cole Credit Property Trust III Inc. (CCPT III) has executed a definitive merger agreement to acquire Cole Holdings Corp., a Phoenix-based real estate investment management firm that manages more than $12 billion in assets. CCPT III is a real estate investment trust focused on net-leased properties. The company’s portfolio includes approximately 1,000 retail, office and industrial properties throughout the U.S.
CCPT III will change its name to Cole Real Estate Investments Inc. upon completion of the transaction. The company will also seek a listing on the New York Stock Exchange (NYSE). Following a listing, Cole Real Estate Investments will be the second largest publicly traded REIT in the net-lease sector. The transaction is expected to close in the second quarter of 2013.
“Through this compelling combination, we have the opportunity to realize the vision of creating a world-class real estate platform and provide investors the benefits of owning high-quality, income-producing real estate leased long term to credit-worthy corporations,” says Christopher Cole, founder and executive chairman of Cole Holdings.
The acquisition of Cole Holdings provides CCPT III with more than 350 employees, as well as a real estate investment management platform of more than 2,000 properties with over 76 million square feet of real estate.
“By adding the same fully-integrated management platform that has been responsible for building and acquiring CCPT III's asset portfolio, stockholders will benefit from the continuity of the proven investment team that has successfully assembled and managed one of the largest REITs focused on the net-lease sector,” says Leonard Wood, chairman of the special committee of the CCPT III board of directors.
CCPT III will make upfront payments of $20 million in cash, which are subject to adjustment, as well as 10,711,225 shares of CCPT III common stock. Additionally, the company will offer the contingent amounts: 2,142,245 shares of CCPT III common stock after a listing on the NYSE and additional shares of CCPT III common stock potentially payable in 2017 as an earn-out contingent upon the acquired business’ financial success.
— Brittany Biddy