CBRE Wins Commonwealth REIT Property Management Assignment
June 18, 2014
Commonwealth REIT, which just went through a bitter boardroom control struggle, has awarded property management of its 156-property, 42.9 million-square-foot office portfolio to CBRE.
Under the terms of the agreement, CBRE will act as sub-manager for each of the REIT’s current properties and additional work that may include coordinating and overseeing the completion of tenant improvements and other capital projects at the properties.
CBRE will be paid a property-by-property management services fee.
Commonwealth and CBRE are currently targeting that CBRE will begin providing management services for all properties on Oct. 1, 2014.
Newton, Massachusetts-based Commonwealth’s office portfolio was 86.5% leased as of March 31, 2014, and generated revenue of $217.26 million for the quarter with $115.5 million in net operating income.
In March, Related Fund Management LLC and Corvex Management LP won support of enough of Commonwealth REIT’s outstanding common shares to remove the entire Commonwealth board.
On May 23 and new board was appointed headed by Samuel Zell as the REIT’s new chairman and David A. Helfand as its president and CEO.
With the change of management control, Commonwealth ceased to actively market 31 properties, which it has classified as held for sale as of year-end 2013.