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Phillips Edison REIT Shareholders Overwhelmingly Approve Internalization

Stockholders of Phillips Edison Grocery Center REIT I, a publicly registered non-traded real estate investment trust, have approved the recent proposal to internalize management of the company, according to a filing with the Securities and Exchange Commission.

As previously reported by The DI Wire, the REIT will acquire the real estate assets and third-party asset management business of its sponsor and external advisor, Phillips Edison Limited Partnership, in a stock and cash transaction valued at approximately $1 billion. The transaction is expected to close during the fourth quarter of 2017.

At the annual meeting of stockholders held last week, 91.4 percent of shareholders voted in favor of the proposal, 2.8 percent voted against, and 5.8 percent abstained.

The transaction will create an internally-managed, non-traded grocery-anchored shopping center REIT with 230 properties and an expected enterprise value of approximately $4 billion.

In other company news, The DI Wire reported earlier this month that Phillips Edison Grocery Center REIT I Inc. and Phillips Edison Grocery Center REIT II severed ties with their respective AR Global affiliated external advisers.

Phillips Edison Grocery Center REIT I launched in August 2010 and raised nearly $1.8 billion before closing the offering in the first quarter of 2014. Shares were originally sold for $10.00 each. The company’s portfolio consists of 154 properties with a combined purchase price of approximately $2.5 billion.

Phillips Edison Limited Partnership has focused on the grocery-anchored shopping center sector since 1991, and its operating platform provides retail services including acquisition, redevelopment, leasing and management of grocery-anchored retail centers.

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