Morrison & Foerster is representing Duff & Phelps in connection with the merger of two publicly registered REITs, Carey Watermark Investors 1 Incorporated (CWI 1) and Carey Watermark Investors 2 Incorporated (CWI 2). The two companies have agreed to merge in an all-stock transaction to create Watermark Lodging Trust, a $4.6 billion, internally-managed non-traded REIT with increased scale and operating efficiencies. The deal was announced on October 22, 2019, and is expected to close in the first quarter of 2020.
CWI 1 and CWI 2 are non-traded REITs managed by affiliates of W. P. Carey Inc. and Watermark Capital Partners, LLC. Following the close of the merger, the combined company will complete an internalization transaction with W. P. Carey Inc. and Watermark Capital Partners, as a result of which the combined company will become self-managed. Duff and Phelps has rendered a fairness opinion to the CWI 2 Special Committee as to the Internalization.
The MoFo deal team is led out of Washington, D.C., by corporate partner and REIT Group co-chair David Slotkin and New York corporate associate Stephanie Ference.
Read the related press release.