Carter Validus Mission Critical REIT II, a publicly registered non-traded real estate investment trust, has completed its merger with affiliated REIT, Carter Validus Mission Critical REIT.
Carter Validus Mission Critical REIT II is now comprised of 150 healthcare and data center properties totaling approximately 8.7 million square feet located across 33 states. The portfolio represents approximately $3.2 billion of total investments, with an average occupancy of 95.3 percent and an average rent escalation and average remaining lease term of 2.3 percent and 10.1 years, respectively.
At last month’s special meeting of stockholders, the merger was approved by approximately 91.7 percent of the votes cast. Roughly 93.1 million shares voted in favor of the merger proposal, approximately 3.3 million voted against, and nearly 5.1 million abstained.
Under the terms of the agreement, Carter Validus Mission Critical REIT II acquired approximately 179 million outstanding shares of Carter Validus Mission Critical REIT common stock. Each Carter Validus Mission Critical REIT stockholder received $1.00 in cash and 0.4681 shares of Carter Validus Mission Critical REIT II Class A common stock for each share of Carter Validus Mission Critical REIT common stock they owned.
“The closing of this transaction represents the beginning of a new and compelling chapter for the company,” said Michael Seton, chief executive officer and president of Carter Validus Mission Critical REIT II. “We believe Carter Validus Mission Critical REIT is an excellent complement to our portfolio, bolstering our healthcare investment portfolio and supporting our growth strategy through increased size and scale as well as further diversification of our existing tenancy and geographic distribution.”
CVMC REIT II invests in net leased data center and healthcare assets and raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014. The company’s follow-on offering, which closed in November 2018, raised $86.9 million as of July 23, 2018.