W.P. Carey Inc (WPC.N) said on Monday it plans to buy commercial real estate owner Corporate Property Associates 17 – Global Inc in a deal valued at about $6 billion, making it one of the largest real estate investment trusts in the United States.
CPA 17 stockholders will receive 0.160 shares of W.P. Carey for each share held, equivalent to $10.72 per share based on the company’s Friday closing price.
After the deal closes in the fourth quarter of 2018, W.P. Carey will have a proforma enterprise value of $17.3 billion.
Under the offer, CPA 17 may evaluate alternative proposals and enter into negotiations with third parties for a period of 30 days, the companies said.
CPA 17 had full or partial ownership interests in 411 properties totaling about 44.4 million square feet as of Dec. 31. W.P. Carey has a portfolio of 886 commercial real estate properties covering about 85 million square feet.
Morgan Stanley & Co LLC was financial adviser to CPA 17, while JPMorgan Securities LLC and Barclays advised WP Carey.