Home News CIM Real Estate Finance Trust Moving Forward with Other Two Mergers

CIM Real Estate Finance Trust Moving Forward with Other Two Mergers

CIM Real Estate Finance Trust, a publicly registered non-traded real estate investment trust, plans to move forward with its proposed merger transactions involving two of its non-traded traded real estate investment trusts.

CIM Real Estate Finance Trust, a publicly registered non-traded real estate investment trust, plans to move forward with its proposed merger transactions involving two of its non-traded traded real estate investment trusts, Cole Office & Industrial REIT (CCIT III) and Cole Credit Property Trust V, following yesterday’s announcement that one of the REITs in the original proposal, Cole Office & Industrial REIT (CCIT II), would be acquired by Griffin Capital Essential Asset REIT.

In late August, CIM Real Estate Finance Trust entered into separate merger agreements to acquire Cole Office & Industrial REIT (CCIT II), Cole Office & Industrial REIT (CCIT III), and Cole Credit Property Trust V.

Each of the REITs had “go-shop” periods where they could solicit alternative proposals from third parties. Yesterday, Griffin Capital Essential Asset REIT announced plans to acquire Cole Office & Industrial REIT (CCIT II) in a $1.2 billion stock-for-stock transaction.

The go-shop periods involving CIM Real Estate Finance Trust and Cole Office & Industrial REIT (CCIT III) and Cole Credit Property Trust V have elapsed, and the companies said that they “are taking the necessary actions to move toward the successful completion of the transactions.”

CIM Real Estate Finance Trust (CMFT) has increased its bid for Cole Credit Property Trust V to reflect an exchange ratio of 2.892x, up from 2.691x. Therefore, CCPT V stockholders will receive 2.892 shares of CMFT common stock for each share of CCPT V common stock, which has an estimated value of approximately $21.14 per share based on CMFT’s most recently estimated net asset value per share of $7.31.

In addition, CIM Real Estate Finance Trust’s merger agreement with Cole Office & Industrial REIT (CCIT III) was amended to increase the exchange ratio from 1.093 to 1.098 shares of CMFT common stock for each share of CCIT III common stock.

Following the mergers, the combined company intends to reposition its portfolio mix to transition over time to a best-in-class credit REIT with a portfolio consisting primarily of net lease real estate and real estate loans.

The merger transactions are expected to close in the fourth quarter of 2020. CCIT III and CCPT V stockholders will vote at special meetings of stockholders scheduled to be held virtually on December 17, 2020.

CIM Real Estate Finance Trust has investments in net lease and multi-tenant retail assets as well as real estate loans and other credit investments. Cole Credit Property Trust V has investments in retail net lease and multi-tenant retail assets. Each of the Cole Office & Industrial REITs hold investments in office and industrial net lease assets.

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