Columbia Property Trust hires advisor following takeover offer

The $3 billion REIT is working with Morgan Stanley following multiple approaches

Columbia Property Trust CEO Nelson Mills (Credit: Columbia Property Trust)
Columbia Property Trust CEO Nelson Mills (Credit: Columbia Property Trust)

Columbia Property Trust has sought an advisor after the real estate investment trust was approached by multiple companies for an acquisition.

The Atlanta-based firm, which owns a 19-property portfolio with 9 million square feet, has hired Morgan Stanley to consult for a possible acquisition after it was approached with several offers, according to Bloomberg. However, none of the offers appear promising, the outlet reported.

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By midday Thursday, the company’s stock climbed 5 percent to $24.73, giving the company a market valuation of $2.9 billion, according to Bloomberg. Its portfolio spans New York, San Francisco and Washington and consists of Class A office buildings.

The mergers and acquisitions world has been on fire this year — especially among REITs thanks to cheap stock prices. In April and June there were at least eight deals announced for REITs totaling $16.5 billion, up from just two deals totaling $4.4 billion in the first quarter of the year.

On Wednesday, LaSalle Hotel Properties walked back a $4.8 billion acquisition by Blackstone, instead opting for an offer from Pebblebrook Hotel Trust. [Bloomberg] — David Jeans

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