W.P. Carey Inc., a leading real estate investment trust company, said it will purchase Corporate Property Associates 16 - Global Inc. for US$4 billion in an all-stock transaction.
In a statement, the two companies are projected to manage joint assets of commercial real estate reaching 86,000,000 square feet rented by 231 firms worldwide. The purchase will not impact on the management of Carey Watermark Investors and Corporate Property Associates, it further said.
The transaction was approved by the board of directors of Corporate Property, subject to approval from stockholders of both firms.
According to the agreement, for every share owned by Corporate Property stockholders, they will get from a low of 0.1447 to a high of 0.1842 shares from W.P. Carey.
W.P. Carey expects that the new investment will boost its yearly dividend to US $3.52 for each share. Presently, its dividend was established at US $3.36 per share. Corporate Property also has the right to accept proposals from other parties until Aug. 24.
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