US REIT receives unsolicited $2.2bn takeover offer

A US real estate investment trust has received an unsolicited takeover approach from minority investors valuing it at $2.2bn, with the suitors claiming the company’s shareholders have been “consistently punished” by negative returns. Investment firms Arkhouse Partners, the Sapir Organization, and 8F Investment Partners have made public a letter sent today (18 March) to New York-listed Columbia Property Trust’s board of directors, proposing a takeover at $19.50 a share and requesting a meeting with the target next week. The proposal values Columbia Property Trust – in which Arkhouse, Sapir and 8F already own a 3.3% stake – at $2.24bn, and is a premium of roughly 29% over the closing stock price last week. The two bidders said financing for the deal has already been secured.  In their letter, the bidders said: “We are experienced real estate investors that believe in the long-term value of Columbia’s high-quality office holdings. We have spent considerable energy and time evaluating Columbia’s portfolio, operating markets, management and strategy, and have made a meaningful investment in the company. “However, we are concerned about the company’s lengthy track record of underperformance in the public market and challenges the company faces on its current course. This general concern is compounded by Columbia’s headwinds across geographies through 2021.” In its own statement, Columbia Property Trust acknowledged receipt of the approach and said: “Columbia’s board and management team regularly evaluate opportunities to enhance stockholder value and will continue to take steps to achieve this objective for the benefit of all stockholders.  “Consistent with its fiduciary duties and in consultation with its legal and financial advisers, the Columbia board of directors will carefully evaluate the proposal to determine the course of action that it believes is in the best interest of the company and all Columbia stockholders.” To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette