Zack Childress – REIT Makes a 2.7 Billion Dollar Purchase

I wanted to bring this to your attention because this just goes to show that the commercial investing world is on a comeback, and a very quick comeback at that!

The reason I say that is because the select income REIT just made a purchase for 2.7 Billion Dollars to buy our Cole Cooperate Income Trust.

 

The Cole Cooperate Income Trust has dealt with commercial properties. Furthermore, it’s had 64 office and industrial properties that the REIT has now taken possession of to add to its Real Estate Investment Trust’s portfolio.

Why is this important to you? We now have a single trust that has literally just went from being a trust in itself to now acquiring another trust to make it one of the bigger players in the marketplace. In addition, they are trying to gobble up Market Share as well.

You also want to realize that the select income trust has broadened its foot print from 24 states to over 35 states; expanding where it holds real estate. They are currently moving across the United States.

You should be aware of this because, at the end of the day, the combined companies will have more than 43 Million square feet of real estate.

That is a big play for any trust to shell out 2.7 Billion Dollars!

I’d like for you to read the article below and just give me your insight on it.  What do you think?  What do you get out of it?

I can tell you that if you’re thinking about going into commercial space, now is the time to do so! That’s my 2 cents.

 

Select Income REIT adds to portfolio in $2.7B deal

 

NEWTON, Mass. (AP) – Select Income REIT will spend about $2.7 billion in cash and stock to buy Cole Corporate Income Trust in a deal that adds 64 office and industrial properties to the real estate investment trust’s portfolio.

The transaction will give Select Income strategic distribution centers for companies like Amazon.com and headquarters locations for companies including Tesoro Corp. and Noble Energy Inc. Select Income said Tuesday the acquisition will expand its United States footprint to 35 states from 21 and diversify its tenants. The combined company will have more than 43 million square feet of real estate.

The acquisition totals about $3 billion, counting the assumption of mortgage debt.

Select Income also will sell 23 health care properties to Senior Housing Properties Trust for about $509 million once the Cole acquisition closes. That would knock the net purchase price of Cole for Select Income down to about $2.2 billion, not counting the mortgage debt.

Select Income will use proceeds from the health care properties sale to help pay for the Cole acquisition as well as a bridge loan and its revolving credit line.

The Cole acquisition is expected to close in next year’s first quarter, pending shareholder approval.

Select Income REIT was spun off from Commonwealth REIT and went public in 2012. The Newton, Massachusetts, company’s shares fell $1.32, or 4.7 percent, to $26.58 in midday trading. They have risen more than 4 percent so far this year.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

 

http://money.msn.com/business-news/article.aspx?feed=AP&date=20140902&id=17896619

Save

 

16 Comments

  • Anonymous

    Reply Reply January 5, 2015

    Awesome article.

     
  • Anonymous

    Reply Reply January 5, 2015

    I was suggested this website by my cousin. I am not sure whether
    this post is written by him as nobody else know such detailed about my difficulty.
    You are incredible! Thanks!

     
  • Anonymous

    Reply Reply January 5, 2015

    There’s certainly a lot to find out about this subject.
    I like all the points you’ve made.

     
  • Anonymous

    Reply Reply January 5, 2015

    I have been browsing online more than 3 hours today, yet I never
    found any interesting article like yours. It is
    pretty worth enough for me. In my opinion, if all website
    owners and bloggers made good content as you did, the
    web will be a lot more useful than ever before.

     
  • read this

    Reply Reply January 5, 2015

    Hi there, I desire to subscribe for this blog to get newest
    updates, thus where can i do it please help out.

     
  • Internet Marketing Company Smyrna

    Reply Reply January 5, 2015

    I enjoy what you guys are usually up too. This type of clever work and exposure!
    Keep up the wonderful works guys I’ve added you guys to my blogroll.

     
  • Anonymous

    Reply Reply January 5, 2015

    Good post. I learn something totally new and challenging on blogs I stumbleupon on a daily basis.
    It’s always interesting to read content from
    other writers and use a little something from other websites.

     
  • Anonymous

    Reply Reply January 5, 2015

    Hi, Neat post. There’s a problem together with your web site in web explorer, could check this?

    IE nonetheless is the marketplace chief and a good element of people will leave
    out your fantastic writing because of this problem.

     
  • Anonymous

    Reply Reply January 5, 2015

    Hi there, just became aware of your blog through Google,
    and found that it’s truly informative. I am gonna watch
    out for brussels. I’ll be grateful if you continue this
    in future. Many people will be benefited from your
    writing. Cheers!

     
  • Anonymous

    Reply Reply January 5, 2015

    Ahaa, its good dialogue about this post here at this weblog, I
    have read all that, so at this time me also commenting here.

     
  • Anonymous

    Reply Reply January 5, 2015

    Hi, I read your new stuff regularly. Your humoristic style is awesome, keep doing
    what you’re doing!

     
  • Anonymous

    Reply Reply January 5, 2015

    whoah this blog is great i really like studying your articles.
    Stay up the good work! You recognize, a lot of individuals are looking around for this information, you could aid
    them greatly.

     
  • Anonymous

    Reply Reply January 5, 2015

    It’s really a nice and helpful piece of information. I am glad that you shared this useful information with us.

    Please stay us informed like this. Thanks for sharing.

     
  • Online Marketing Company Marietta

    Reply Reply January 5, 2015

    Oh my goodness! Impressive article dude!
    Thanks, However I am going through issues with your
    RSS. I don’t understand the reason why I cannot subscribe to it.
    Is there anybody else having the same RSS issues? Anyone who knows the answer can you kindly respond?
    Thanks!!

     
  • Anonymous

    Reply Reply April 7, 2015

    Just want to say your article is as amazing. The clearness in your post is simply spectacular and i can assume
    you’re an expert on this subject. Well with your permission let me to grab your RSS feed to keep up to date with forthcoming post.

    Thanks a million and please continue the rewarding work.

     
  • Anonymous

    Reply Reply April 9, 2015

    I could not resist commenting. Exceptionally well written!

     

Leave A Response

* Denotes Required Field