Columbia Property Trust Will Buy Normandy Real Estate Management
The $100 million deal will bolster Columbia’s reach in New York City, among other cities
Columbia Property Trust announced a deal to buy acquire Normandy Real Estate Management.
The target company manages office- and mixed-use assets in New York, Boston, and Washington, D.C.
The deal will see Columbia acquire Normandy’s operating platform. It will also purchase Normandy’s general partner interests in three active management funds.
The cash and stock transaction has a value of $100 million, exclusive of the transaction and closing costs.
Why Columbia Property Trust Bought Normandy Real Estate
Normandy has a history of acquiring, developing, redeveloping, repositioning, and managing real estate assets. The firm has acquired or developed over 30 million square feet of office space. These properties are across New York, New Jersey, Boston, and Washington, D.C. The properties include dozens of major headquarters facilities for leading companies.
“The strategic combination of Columbia and Normandy will form a stronger company with an exceptional gateway market portfolio, a world-class team and a robust pipeline. We have tremendous respect for Columbia’s strategy and leadership team, and, after launching two projects with them this past year, we’ve seen how well their culture and business model align with ours,” Normandy founder Finn Wentworth said on behalf of his partners. “We believe that combining our development expertise and deep relationships in New York, Boston and D.C. with Columbia’s platform will create a formidable force in these markets. The combined [company] will be positioned to expand on our extensive records of success and deliver superior results for all stakeholders.”
Columbia Property Trust owns, operate and develops Class-A office buildings in high-barrier U.S. office markets. These assets are primarily based n the cities listed above.
“Expanding our platform, both our capabilities and presence in our key markets, is highly supportive of Columbia’s long-term growth objectives,” said Nelson Mills, President and Chief Executive Officer of Columbia. “Combining the Columbia and Normandy teams enhances our mutual talent, resources, and relationships, and strengthens our position as a leader in our target markets.”
The transaction will likely close by year-end 2019 pending the completion of customary closing conditions.
Latest Alternative Investment News
Private Equity Meets Both Privacy Concerns and Major Growth in Next-Generation Industry. The PE space is buzzing over private equity giant Blackstone’s acquisition of DNA testing company Ancestry. The firm…
Ares Leapfrogs Competitors Through Pandemic. Investment firm giant Ares has raised $5 billion for its private equity fund in the second quarter. The firm’s goal is to raise up to…
The Hoya Capital Housing ETF (NYSE: HOMZ) announced Wednesday a cut in its expense ratio from 0.45% to 0.30%, effective from August 1, 2020. It claimed that it has the…