Griffin Capital REITs Merge to Form $4.7 Billion Company
Griffin Capital Essential Asset REIT II Inc. (GCEAR II), a publicly registered non-traded real estate investment trust, has completed its merger transaction with Griffin Capital Essential Asset REIT, creating a $4.7 billion self-managed REIT.
Griffin Capital Essential Asset REIT II Inc. (GCEAR II), a publicly registered non-traded real estate investment trust, has completed its merger transaction with Griffin Capital Essential Asset REIT, creating a $4.7 billion self-managed REIT.
Griffin Capital Essential Asset REIT II will be the surviving entity, overseeing a portfolio of 101 office and industrial properties totaling approximately 27.2 million square feet. The company said that the combination brings together two “complementary, similarly-constructed portfolios with analogous investment mandates, increasing the size, scale, and diversification of the new entity.”
Kevin Shields resigned as chief executive officer and was named executive chairman, and Michael Escalante was appointed CEO and will continue his role of president.
“We appreciate the confidence of our shareholders who voted overwhelmingly in favor of this merger, which will deliver immediate and significant value,” said Escalante. “[Griffin Capital Essential Asset REIT II] is well-positioned for the future and our experienced management team is committed to intelligent growth of the portfolio and the continued generation of superior income and overall risk-adjusted returns for our shareholders.”
Additionally, Javier Bitar will continue in his roles of chief financial officer and treasurer, and Howard Hirsch was appointed chief legal officer and secretary and relinquished his position as vice president.
Louis Sohn was appointed managing director of acquisitions and corporate finance, and Scott Tausk was appointed managing director, asset management. Don Pescara will continue in his role of vice president of acquisitions, and Julie Treinen will continue in her role of vice president of asset management.
Mary Higgins resigned as general counsel and vice president but will continue her role with Griffin Capital Company as general counsel, real estate; and David Rupert resigned as executive vice president but will continue his role with Griffin Capital as president.
Additionally, the REIT’s board increased from five to seven members and appointed Gregory Cazel and Ranjit Kripalani as independent directors.
Per the merger agreement, each share of Griffin Capital Essential Asset REIT common stock will be automatically converted into the right to receive 1.04807 shares of newly created Griffin Capital Essential Asset REIT II Class E common stock.
Each share of the Griffin Capital Essential Asset REIT preferred stock will be automatically converted into the right to receive one share of newly created Griffin Capital Essential Asset REIT II Series A Cumulative Perpetual Convertible Preferred Stock.
Griffin Capital Essential Asset REIT II reports its net asset value on a daily basis and oversees a portfolio of single-tenant, net-lease assets throughout the United States, diversified by corporate credit, physical geography, product type, and lease duration. Griffin Capital Securities is the dealer manager for the REIT.
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