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Single-Tenant REITs to Merge, Creating $5.8B Portfolio
Griffin Capital Essential Asset REIT (GCEAR) and Cole Office & Industrial REIT (CCIT II) agreed to merge, with GCEAR acquiring CCIT II for approximately $1.2 billion in a stock-for-stock transaction. The merger would combine similar portfolios of single-tenant, office and industrial properties to create a 31-million-square-foot portfolio valued at $5.8 billion.
The agreement follows a proposal Phoenix-based CCIT II’s board received from El Segundo, CA-based GCEAR during a “go-shop” period as part of a merger agreement with CIM Real Estate Finance Trust (CMFT). CCIT II determined that GCEAR’s proposal was superior and exercised its right to terminate the agreement with CMFT.
GCEAR’s CEO, Michael Escalante, said, “When presented with the opportunity to acquire CCIT II, we immediately recognized the benefits of a potential combination and we are pleased that the CCIT II board concurred.” He added that the merger provides “a compelling strategic opportunity to both stockholder groups.”
Pictured: GCEAR office property leased to Aetna in Tucson.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition
- ◦Lease
