CIM Real Estate Finance Trust Completes Mergers with Two Affiliated Non-Traded REITs

CIM Real Estate Finance Trust (CMFT), a publicly registered non-traded real estate investment trust, has completed the previously announced stock-for-stock merger transactions with two affiliated non-traded REITs.

CIM Real Estate Finance Trust (CMFT), a publicly registered non-traded real estate investment trust, has completed the previously announced stock-for-stock merger transactions with two affiliated non-traded REITs, Cole Office & Industrial REIT (CCIT III) and Cole Credit Property Trust V (CCPT V).

The combined company has approximately $4.8 billion in total asset value and a net asset value of $2.6 billion, based upon the companies’ respective June 30, 2020 NAVs. The REIT is primarily invested in net lease assets and commercial real estate debt.

“The combined company will provide several benefits for stockholders and will be well-positioned to navigate the post-COVID economic environment with enhanced financial and operational flexibility and efficiency, making the combined company more valuable,” said Richard Ressler, principal and co-founder of CIM Group.

CIM REIT said that the immediate benefits of the transaction include increased scale, asset and tenant diversity, and a flexible balance sheet. The greater size and improved portfolio diversification should provide it with greater access to debt and equity capital markets, and better position it for a potential future liquidity event, including a public market listing, the company added.

Both CCIT III and CCPT V stockholders voted in favor of the respective mergers during virtual special meetings of stockholders held on December 17, 2020. CCIT III stockholders will receive 1.098 shares of CMFT stock for each CCIT III share and CCPT V stockholders will receive 2.892 shares of CMFT stock for each CCPT V share.

One of the REITs in the original proposal, Cole Office & Industrial REIT (CCIT II), is being acquired by Griffin Capital Essential Asset REIT, as reported by The DI Wire in November.

CIM is a real estate and infrastructure owner, operator, lender and developer. Since 1994, CIM has managed more than $60 billion in projects across the Americas.

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