Cole Credit Property Trust III Inc. will buy Cole Holdings Corp., a real estate investment management firm.
Cole Credit Property will pay $20 million cash, plus hand over shares of its common stock before and after a planned initial public offering (IPO).
Cole Holdings currently manages more than $12 billion in real estate assets for more than 160,000 individual investors.
Cole Credit Property is a real estate investment trust (REIT) that focuses on commercial real estate. The deal will provide the company with a full-scale real estate investment management company, and puts it in a better position to pursue an IPO.
After the deal, Cole Credit Property will change its name to Cole Real Estate Investments Inc., and pursue an IPO on the New York Stock Exchange.