Columbia principals Oliver Carr, chairman, president and CEO,and John Schissel, executive vice president and CFO, will reinvest25% or more of their current equity in the company into the newentity when the transaction is complete. The two will also enterinto new employment agreements with the JPMorgan Asset Managementsubsidiary that will replace their current agreements. The deal isexpected to close during the first quarter 2007. Columbia'sstockholders still need to approve the transaction.

It is likely they will, given the value the transaction isexpected to deliver. Stakeholders that bought into Columbia's IPOlast year will reap a return north of 31%, Mark Decker, vicepresident with investment banking firm RW Baird in NorthernVirginia, notes. "That is exceptional for a 16 month investment,"he tells GlobeSt.com.

Columbia and SSPF said in a statement that the per sharepurchase price would give shareholders a 12.4% premium over itsclosing share price on November 3, which was $16.91. The purchaseprice also reflected a 12.6% premium to the volume weighted averageclosing price over the past 30 days, the statement said. Columbia'sBoard of Directors unanimously approved the transaction.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.