PHOENIX—VEREIT Inc. and CIM Group said Monday afternoon they had signed a purchase agreement for an affiliate of CIM Group to acquire Cole Capital, VEREIT's investment management business. For VEREIT, the sale will represent a streamlining of its business; for Los Angeles-based CIM, it will bring a retail distribution network serving independent broker-dealers and registered investment advisors into the fold.
“The transaction allows us to simplify our core business model and focus on our large, diversified single-tenant real estate portfolio,” says Glenn Rufrano, VEREIT'S CEO. “Cole Capital will have a sponsor in CIM with an institutional foundation and established distribution relationships with wirehouses.”
The sale will bring up to $200 million to VEREIT, comprised of $120 million cash paid at closing under the purchase agreement and up to $80 million in fees to be paid under a six-year services agreement based on Cole's future revenues. VEREIT will be required to provide operational real estate support to Cole for approximately one year under the services agreement.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
