Largest real estate merger for 2016 worth $58 billion
Colony Capital, Inc. , NorthStar Asset Management Group Inc. and NorthStar Realty Finance Corp. jointly announced that the shareholders of all three companies voted to approve the previously announced merger of the three companies at their respective special meetings.
A global, diversified real estate and investment management leader, the combined company will be named Colony NorthStar, Inc., and will be listed on the New York Stock Exchange under the ticker symbol “CLNS”. With a pro-forma equity market capitalization in excess of $8 billion, Colony NorthStar, Inc. is expected to be in the top quartile of equity REITs as measured by market capitalization, according to the MSCI U.S. REIT Index (RMZ) classification. The transaction was first announced on June 3, 2016.
Colony NorthStar, Inc. will have assets under management in excess of $58 billion, managing capital on behalf of its stockholders, institutional and retail investors in private funds and non-traded and traded real estate investment trusts and 1940 Act companies. Through increased scale and a more diversified and stable investment portfolio with best-in-class corporate governance, Colony NorthStar, Inc. should benefit from a stronger balance sheet; ongoing deleveraging and improved liquidity; broadened access to multiple sources of capital, including fee-bearing capital to accelerate growth and provide enhanced returns to shareholders; and significant continuing cost savings as a result of the merger.
Thomas J. Barrack, Jr., Executive Chairman of Colony, commented, “This merger is the result of decades of long line relationships by all three companies aligning into one powerful, global real-estate and real asset investment manager.”
David T. Hamamoto, Executive Chairman of NSAM and Chairman of NRF, commented, “The overwhelmingly favorable shareholder vote provides support to our view that combining these three complementary companies will result in what we believe is the best outcome for all stakeholders. We are very excited with creating such a strong partnership of already established companies and our future prospects.”
“Our focus now turns to the successful integration of the businesses, realizing the anticipated synergies of the merger, and executing on our go-forward strategic plan by taking advantage of the unique scaled platform resulting from the merger,” added Richard B. Saltzman, Chief Executive Officer of Colony.
Upon closing of the transaction, Thomas J. Barrack Jr. will be Executive Chairman of the Board of Directors of Colony NorthStar, Inc., David Hamamoto will be Executive Vice Chairman, and Richard B. Saltzman will be Chief Executive Officer.
The companies expect to complete the merger in January 2017, subject to customary closing conditions.
Source: NorthStar Asset Management Group