On October 16, 2019, Columbia Property Trust, Inc. announced that it had entered into an agreement to acquire Normandy Real Estate Management, LLC.
Pursuant to the agreement, Columbia Property Trust, Inc. (“Columbia”) will acquire the operating platform and general partner interests in three active management funds of Normandy Real Estate Management, LLC (“Normandy”). The mixed cash and stock transaction is valued at approximately $100 million, with the consideration consisting of $13.5 million in cash and approximately $86.5 million in convertible preferred units with a strike price of $26.50 per share. Normandy partners Finn Wentworth, David Welsh, Jeff Gronning, Gavin Evans and Paul Teti are expected to join Columbia’s senior management team, with Wentworth joining Columbia’s Board of Directors. The transaction is expected to close by the end of 2019, subject to customary closing conditions including partner and lender consents.
Normandy is a privately owned real estate developer, operator and investment manager of office and mixed-use assets. It has over 30-million square feet of office space in the Northeast and Mid-Atlantic region and manages approximately 14 million square feet of assets on behalf of joint venture partners and fund investors.
Columbia (NYSE: CXP) is an owner, operator and developer of office buildings primarily in New York, San Francisco and Washington D.C. Its portfolio includes 17 properties with over seven-million in rentable square feet.
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