DALLAS—Shares of PMC Commercial Trust began trading under the ticker PMCT on Nasdaq Wednesday following the completion of its merger with CIM Urban REIT. When the union was first announced this past July, the deal was valued at slightly more than $2.4 billion.
In connection with the merger, a CIM Urban REIT affiliate received approximately 22 million newly-issued common shares and approximately 65 million newly-issued preferred shares of PMCT stock. Prior to the merger, the CIM trust was a private commercial REIT managed by a subsidiary of Los Angeles-based CIM Group. The subsidiary now will manage PMCT.
With the merger now a done deal, “individual investors will have access to CIM’s institutional real estate and infrastructure investment platform,” says Richard S. Ressler, chairman of PMCT’s board and co-founder and principal of CIM Group. “PMCT is now a well-capitalized owner of top-tier real estate assets located in some of the best performing real estate markets in North America.”
Founded in 1979 as a lender, PMCT focuses on two strategies: investing in stabilized real estate, with properties across Texas, California and the East Coast; and providing real estate loans to small businesses, mainly in the hospitality sector. Over time, the company says, it intends to branch out into new real estate-related activities, “as part of its plan to prudently grow market value and earnings.”
This past Monday, PMCT announced its final quarterly and full-year results under its previous stock ticker, PCC. The company also said it’s anticipating loan fundings of between $65 million and $85 million during 2014.