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Griffin Capital Essential Asset REITs Complete Merger

May 3, 2019

Griffin Capital Essential Asset REITs Complete Merger

May 3, 2019 | James Sprow | Blue Vault

In a press release on May 1, Griffin Capital announced the completion of the merger of Griffin Capital Essential Asset REIT II, Inc. (“GCEAR II”) with Griffin Capital Essential Asset REIT, Inc. (“GCEAR”).

According to the announcement:

“The merger creates a $4.7 billion, self-managed REIT, which will generate significant benefits for shareholders, including substantial cost savings, increased operating efficiencies, and immediate accretion to earnings and cash flow. Operating as GCEAR II, the combined company brings together two highly-complementary, similarly-constructed portfolios with analogous investment mandates, significantly increasing the size, scale, and diversification of the new entity.”

“We appreciate the confidence of our shareholders who voted overwhelmingly in favor of this merger, which will deliver immediate and significant value,” said Michael J. Escalante, CEO and President of GCEAR II. “GCEAR II is well-positioned for the future and our experienced management team is committed to intelligent growth of the portfolio and the continued generation of superior income and overall risk-adjusted returns for our shareholders.”

“As previously announced on December 14, 2018, GCEAR completed a self-administration transaction which provided immediate benefits to GCEAR shareholders, including a considerable reduction in the operating expenses of GCEAR; these benefits will extend to the combined company, effective today. On March 13 and April 15, 2019, GCEAR II and GCEAR shareholders respectively voted to approve the transaction; approximately 90 percent of the shares voted were in favor of the merger.”

The transaction was first announced on December 14, 2018. On March 13 and April 15, 2019, GCEAR II and GCEAR shareholders respectively voted to approve the transaction. Approximately 90% of the shares voted were in favor of the merger.

Related: Griffin Institutional Access® Real Estate Fund Surpasses $3 Billion in Assets Under Management

Griffin Capital Essential Asset REIT is focused on acquiring office, industrial and manufacturing assets that are 100% triple- or absolute- net leased to single, creditworthy tenants. Its portfolio, as of September 30, 2018, consisted of 76 office and industrial properties totaling 20.1 million rentable square feet, located in 20 states.

Griffin Capital Essential Asset REIT II, Inc., is a self-managed, publicly registered, non-listed Real Estate Investment Trust (REIT) that reports its Net Asset Value (NAV) daily. Its portfolio of net-lease assets consists of single-tenant, business essential properties throughout the United States, diversified by corporate credit, physical geography, product type, and lease duration. As of April 30, 2019, Griffin Capital Essential Asset REIT II owns 101 properties located in 25 states totaling 27.2 million in rentable square feet, representing a total REIT capitalization of $4.7 billion.

Sources:  Griffin Capital, GlobeSt.com, Blue Vault

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Matthew C. Strife
Blue Vault Services
April 11, 2016

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