Funds managed by Pacific Investment Management Company LLC (PIMCO), a global investment management firm, have agreed to purchase Columbia Property Trust Inc. (NYSE: CXP), a publicly traded real estate investment trust, in a deal valued at $3.9 billion, including debt.
Reuter’s reported that PIMCO will pay roughly $2.2 billion for the office REIT, which owns a 6 million square-foot portfolio of 15 office properties located in New York, San Francisco, Washington and Boston, and has four additional projects under development.
PIMCO will acquire all of the outstanding shares of Columbia common stock for $19.30 per share in cash. Columbia shares closed at $19.05 on Tuesday, up 15.2 percent from the previous close of $16.54.
“We continue to believe that high-quality office buildings in major U.S. cities offer long-term value for our clients, and Columbia has assembled a modernized, well-located portfolio of assets that we expect will perform well in the years ahead,” said John Murray, PIMCO global head of private commercial real estate.
The transaction is expected to close by the end of the year, and upon completion, Columbia’s common stock will no longer be listed on the New York Stock Exchange.
In addition to its property portfolio, has more than eight million square feet of space under management for private investors and third parties.
PIMCO manages more than $180 billion in commercial real estate assets globally and its investment platform includes closed-end funds, interval funds, mutual funds, exchange-traded funds, among others.