Tuesday, October 08, 2013

Leo's Luck

One of these days I expect the stock market to react to Washington's game of chicken.  Let's hope it's not Thursday, October 10th, because that's the date Columbia Property Trust (formerly known as Wells Real Estate Investment Trust II) plans list its shares on the NYSE under the symbol CXP.  This is a huge listing - Columbia raised $6.2 billion of equity.

There are a couple of points to keep in mind as Columbia moves to liquidity.  The listing is a full liquidity event, there are no lock-ups or tranched releases.  Columbia executed a 1-for-4 reverse stock split in August.  It's most recent Net Asset Value per share (December 2012) is a split adjusted $29.32 per share.  (Obviously, an investor's original investment price is now $40 per share).  Finally, Columbia is expected to offer a $300 million dutch tender offer, which is about 4.8% of the $6.2 billion raised in equity, so I'd expect substantial over subscriptions, or over tenders whatever the correct term.

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