Investment manager PIMCO is buying NYSE-listed Columbia Property Trust in a $3.9bn (€3.3bn) deal.
Columbia Property, which announced a strategic review of its business in April this year, said it has agreed to be bought by funds managed by PIMCO in the $3.9bn deal, including debt.
PIMCO, which merged with Allianz Real Estate last year, is paying Columbia Property shareholders $19.30 for each share and will delist Columbia Property following the completion of the transaction. As of 1006am Eastern Daylight Time, Columbia Property shares traded 15.8% higher at $19.15.
Columbia Property owns a 6m sqft US office portfolio of 15 properties as well as 4 properties under development, and also has more than 8m sqft under management.
Constance Moore, chair of the Columbia Property Trust board of directors, said the transaction provides shareholders with immediate and certain cash value at a “significant premium to the company’s public market valuation, and we are confident it represents the best outcome for all Columbia shareholders”.
Nelson Mills, president and CEO of Columbia Property Trust, said: “Today’s announcement represents the result of a comprehensive strategic review process and demonstrates the value and stability of Columbia’s portfolio, the resiliency of our platform, and the capabilities of our team.”
John Murray, PIMCO global head of private commercial real estate, said: “We continue to believe that high-quality office buildings in major US 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.”
Francois Trausch, PIMCO MD and CEO of Allianz Real Estate, said: This is an exciting transaction and a great example of the strength of relationships within PIMCO’s global real estate platform.”
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