Real estate M&A enjoyed an excellent 2012, and the pace quickened in the first quarter of this year. Deals of $100 million or more increased by 13 percent on an annualized basis over last year, the sectors best since at least 2000 in deal volume, according to Dealogic. The $36 billion in dollar volume of the first quarter activity was a 70 percent increase over last year, and if it persists, 2013 will be the first year with more than $100 billion in U.S. real estate M&A activity since 2007. More than a quarter of the first quarter activity by dollar volume came on American Realty Capital Properties Inc.s $9.7 billion bid for Cole Credit Property Trust III Inc. in March. American Realty dropped the offer on April 11. Below, we list the advisers on three real estate transactions of $1 billion or more announced in January.
Spirit Realty Capital Inc./Cole Credit Property Trust II
Spirit Realty Capital Inc. and Cole Credit Property Trust II agreed to combine on January 22 in a deal that places a combined value of $7.1 billion on the two companies, both of which are commercial REITs. The combined entity will retain Spirit Realty’s name and management, though Cole shareholders will own 56 percent of the new company. The deal will be a backdoor initial public offering for Cole, whose stock is not publicly traded.
