Columbia Property Trust Acquires Normandy Real Estate Management
The transaction is dated to close by year-end, subject to customary closing conditions.
NEW YORK CITY- Columbia Property Trust, Inc., a real estate investment trust, has signed a definitive agreement to acquire its long-time business partner Normandy Real Estate Management, LLC, a developer, operator and investment manager. The transaction is dated to close by year-end, subject to customary closing conditions.
Columbia will acquire Normandy’s operating platform and real property interests for approximately $100 million, including $13.5 million in cash and approximately $86.5 million in convertible preferred units, issued at a strike price of $26.50 per share.
In addition, Columbia will acquire Normandy’s general partner interests in three active management funds. The general partnerships and several limited partnership interests total approximately 2 percent in each of Normandy Real Estate Fund III, LP; Normandy Real Estate Fund IV, LP; and Normandy Opportunity Zone Fund, LP.
“Expanding our platform – both our capabilities and presence in our key markets – is highly supportive of Columbia’s long-term growth objectives. Combining the Columbia and Normandy teams enhances our mutual talent, resources and relationships, and strengthens our position as a leader in our target markets,” said Nelson Mills, president and CEO of Columbia, in a prepared statement.
Normandy’s portfolio boasts over 30-million-square-feet of office space across New York, New Jersey, Boston, and Washington, DC. The transaction has been approved by Columbia’s Board of Directors and Normandy’s ownership partners.