Home Alts News Phillips Edison Grocery Center REIT III Shareholders Approve Merger with Co-Sponsor

Phillips Edison Grocery Center REIT III Shareholders Approve Merger with Co-Sponsor

Shareholders of Phillips Edison Grocery Center REIT III Inc. (PECO III), a publicly registered non-traded real estate investment trust co-sponsored by Phillips Edison & Company (PECO) and Griffin Capital Company, approved the merger with Phillips Edison & Company, an internally managed REIT.

image_pdf

Shareholders of Phillips Edison Grocery Center REIT III Inc. (PECO III), a publicly registered non-traded real estate investment trust co-sponsored by Phillips Edison & Company (PECO) and Griffin Capital Company, approved the merger with Phillips Edison & Company, an internally managed REIT. Shareholders voted at a special meeting held on October 30, and the merger closed the following day.

At the special meeting, nearly 4.1 million shares voted in favor of the merger proposal, 51,440 voted against it, and 133,134 abstained.

For the merger consideration, holders of PECO III Class A common stock will receive 0.6693 shares of PECO common stock and $0.0939 in cash per share. Class I shareholders will receive 0.7436 shares of PECO common stock and $0.0941 in cash per share. Class T shareholders will receive 0.7749 shares of PECO common stock and $0.0989 in cash per share.

Shareholders can receive additional shares of PECO common stock instead of the cash portion of the merger consideration, based on the most recent estimated net asset value per share of PECO common stock of $11.10.

The merger consideration is higher than both the mid-point ($6.54) and high-end ($6.88) of PECO III’s NAV per share range.

Phillips Edison & Company Inc. (formerly known as Phillips Edison Grocery Center REIT I Inc.) is one of the nation’s largest owners and operators of grocery-anchored shopping centers. The company oversees a portfolio of 298 properties totaling approximately 33.5 million square feet, as well as minority interests in two joint ventures. The company’s offering was declared effective by the SEC in August 2010 and raised approximately $1.8 billion in investor equity before closing in February 2014.

Phillips Edison Grocery Center REIT III’s registration statement for its initial public offering was declared effective in May 2018 and Griffin Capital Securities LLC served as the dealer manager for the offering. The company suspended its public offering on June 14th pending a review of strategic alternatives. As of the second quarter of 2019, the company’s portfolio consisted of three properties.

During the private placement offering that launched in October 2016, the REIT raised $57.7 million, while the public offering raised approximately $6 million, as of the second quarter 2019.

Click here to visit The DI Wire directory sponsor page.