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Safehold, iStar to Merge, Creating Internally Managed Ground Lease Company
Safehold Inc. and iStar Inc. said Thursday today that the two companies entered into a definitive agreement for a tax-free, strategic combination that will accelerate Safehold’s market leadership in the ground lease industry. The merger will also make Safehold the only internally-managed, pure-play ground lease company in the public markets.
Under the terms of the transaction, Safehold will internalize iStar’s management team / intellectual property, replacing Safehold’s external management structure. Prior to the merger, iStar will spin off to iStar shareholders a new publicly traded entity that will own all of its remaining non-ground lease assets and $400 million of its Safehold shares.
“This transaction is an important step forward in our strategy to significantly expand the use of modern ground leases in commercial real estate and further extend Safehold’s position as the pre-eminent ground lease company,” said Jay Sugarman, chairman and CEO of iStar and Safehold.
- ◦Sale/Acquisition
