Office real estate investment trust Columbia Property Trust Inc. is purchasing the operating platform and real property interests of Normandy Real Estate Management LLC for about $100 million, exclusive of transaction and closing costs.
The purchase price consists of $13.5 million in cash and about $86.5 million in convertible preferred units, issued at $26.50 per share.
The cash-and-stock transaction includes the general partnership interests and certain limited partnership interests totaling approximately 2% in each of Normandy Real Estate Fund III LP, Normandy Real Estate Fund IV LP and Normandy Opportunity Zone Fund LP.
The acquisition will help the office landlord to expand its platform, augment its growth strategy and improve its cash flow.
Finn Wentworth is expected to join Columbia's board, while Jeff Gronning is expected to be its chief investment officer. David Welsh will be chairman of the investment committee for Normandy's Funds III and IV. Fellow partners Gavin Evans and Paul Teti will join Columbia's senior leadership team.
The deal, which has been approved by the REIT's board and Normandy's ownership partners, is set to be completed before the end of 2019.
Morgan Stanley is the exclusive financial adviser to Columbia, while Kelley Drye & Warren and King & Spalding are its legal advisers. Moelis & Co. is the exclusive financial adviser to Normandy and Goodwin Procter is its legal counsel.