- Proven Real Estate Management Platform: Cole Holdings provides CCPT III with a leading real estate investment management platform that features both traditional and fee-based real estate investment products. Since its founding in 1979, Cole Holdings has built a proven, integrated management team with in-house capabilities in key areas of asset management, acquisitions, leasing, financing, capital markets, client service and stockholder operations. As one of the most successful firms in terms of distributing real estate investment solutions to retail investors, Cole Holdings is an attractive growth business of substantial size comparable to many of the leading real estate and alternative investment managers. The third-party investment management business offers attractive earnings and capital appreciation potential.
- Management Continuity: CCPT III will continue to benefit from the knowledge and operational efficiencies resulting from seamless integration of the same real estate management platform that has acquired and managed the real estate assets of CCPT III since its inception.
- Accretive Transaction Providing an Increased Dividend: With a market-leading, diverse asset portfolio and strengthened FFO, CCPT III is well positioned to deliver enhanced dividend growth, supported, in part, by the expected accretion and anticipated cash flow growth resulting from the acquisition of an institutional-quality investment management business, which will generate revenue by managing other real estate vehicles. In addition, CCPT III's board of directors has authorized an increase in the company's dividend rate from an annualized rate of $0.65 per share to an annualized rate of $0.70 per share effective upon the closing of the transaction.
- Liquidity: Assuming listing on the NYSE as planned, stockholders will have even greater access to liquidity with the flexibility to sell or retain shares based on public market value. For CCPT III stockholders, this represents the opportunity to achieve a liquidity event substantially earlier than was previously anticipated.
- Greater Capital Markets Access: With the acquisition of Cole Holdings, CCPT III now has the opportunity not only to continue raising capital from retail distribution channels, but also to increase its access to institutional investors and related capital sources. In addition to the organic capital raising opportunities, CCPT III will be better positioned to seek other accretive opportunities once a listing on the NYSE has occurred. And with the ability to offer multiple investment vehicles (e.g. listed shares, non-listed offerings), CCPT III will appeal to a broad range of current and potential investors.
- New Fee Income: CCPT III will benefit from its new income stream of fees earned by Cole Holdings from the management of other real estate vehicles, including Cole Credit Property Trust IV, Inc., Cole Corporate Income Trust, Inc. and Cole Real Estate Income Strategy (Daily NAV), Inc.
- Elimination of Management Fee Expense: CCPT III will benefit from cost savings resulting from the elimination of its external management fees.
Cole Credit Property Trust III, Inc. Completes Acquisition Of Cole Holdings Corporation
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