A Cole Capital managed non-traded REIT will soon merge with Select Income REIT. Cole Corporate Income Trust, Inc.’s (CCIT) stockholders approved the merger with 92.8% of the shares voted in favor of the transaction. 60.7% of all eligible shares voted.
“Today’s results are a testament to the strength of our talented team of financial services and real estate professionals, the Cole Capital platform, our institutional-quality net lease investment strategy and our commitment to delivering results for the valued stockholders of our non-listed REIT programs,” said Michael Ezzell, Chief Executive Officer and President of Cole Capital.
Massachusetts-based SIR will acquire CCIT for approximately $3 billion, payable through a combination of cash, SIR common shares, and the assumption of certain mortgage debt.
CCIT stockholders can elect to receive $10.50 in cash or 0.36 shares of SIR common stock for each share of CCIT common stock, provided that neither the cash nor the stock consideration will exceed 60.0% of the total.
The merger provides CCIT stockholders a cash consideration of $10.70 gross per share or $10.50 net per share (net of incentive fees and transaction-related expenses for CCIT).
“CCIT’s disciplined investment strategy of acquiring and actively managing high quality, income-producing properties, net-leased long-term to creditworthy corporate tenants created an institutional-quality portfolio of office and industrial assets that will immediately enhance the SIR portfolio to the benefit of its shareholders,” noted Mark Selman, President and CEO of CCIT.
CCIT’s manager, Cole Capital, is owned by American Realty Capital Properties (ARCP). ARCP is a publicly traded REIT that’s under investigation by regulators regarding an alleged cover-up of a $23 million accounting issue.
At the end of September 2014, CCIT’s portfolio consists of 87 properties with 100% occupancy according to data from MTS Research Advisors.