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Low Key REIT in Oakbrook not so low key right now
April 24th, 2013 4:23 PM

Three of the largest private equity firms in the country have included non-listed real estate investment trusts in their partnerships.  The purpose of these mergers are so they can go public and begin to sell shares on the open market as they near the time when they are obligated to pay out dividends to their investors.

A non-listed REIT is usually advertised by brokers to investors and is not traded on the exchange.  Mark Decker, head of real estate investment and corporate banking at BMO Capital Markets says they usually have a life span of about 5 – 10 years and then thy have to begin looking for an exit strategy.

Inland Real Estate Group of Cos in Oakbrook, which has $10.8 billion in assets, is one of those trusts that have reached that point.  Daniel Goodwin, CEO of the group says, “All indications are that investment bankers will be very busy.  There will be mergers and acquisitions, there will be IPOs, and there will be secondary offerings.”

They aren’t the only ones.  Others include, American Realty Capital Properties Inc, Cole Credit Property Trust II Inc, Apple REIT Six Inc, Spirit Realty Capital Inc, and more have entered into mergers, buy outs and other forms of grouping capital in order to facilitate their shareholders.

Even A.J. Agarwal, a senior director with Blackstone Group LP, says that REIT’s are always looking for ways to give money back their shareholders.  This is an industry that last year alone transacted $10.5 billion, which is the highest since 2007, according to Blue Vault Partners LLC, an industry tracking firm.

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Posted by Michael Hobbs on April 24th, 2013 4:23 PMPost a Comment

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