Cole REIT Announces $2.5B Offering
- Dec 17, 2008
Cole Credit Property Trust III has kicked off a public offering of up to 250 million shares of common stock valued at approximately $2.5 billion. Net proceeds from the offering will be primarily earmarked for the acquisition of net leased retail properties. The REIT is offering up to 230 million common-stock shares at $10.00 per share. It can also tender up to an additional 20 million common-stock shares with a price tag of $9.50 per share for issuance under its distribution reinvestment program. Cole Capital Corp., a segment of investment firm Cole Real Estate Investments, will manage the 250 million share best efforts offering. The Securities and Exchange Commission declared CCPT III’s registration statement effective on Oct. 1. As of Dec. 12, the REIT had not accepted any investors’ subscriptions nor had it issued any shares of its common stock in the offering, according to a Dec. 12 document that supplements CCPT III’s Oct. 15 prospectus. Until subscriptions totaling at least $2.5 million are received and accepted by CCPT III, all subscription proceeds will be placed in escrow as stated in terms of an escrow agreement with UMB Bank N.A. CCPT III will offer the shares until Oct. 1, 2010, unless all shares being offered have been sold, the document stated. If all of the shares have not been sold by that date, the offering can be extended.