The real estate market is thriving, and valuations are rising with billions of dollars tied up in real estate investment trusts (REITs).
“I expect that 2015 will be a robust year for M&A activity in the public, non-listed REIT sector,” said Rosemarie Thurston, Alston & Bird partner and lead of the firm’s REITS and Real Estate Funds Team, noting that industry analysts have predicted between $15 billion and $20 billion of activity for these vehicles by year’s end. “Public, non-listed REITs are attractive to both private and public buyers due to the difficulty in assembling large portfolios of commercial real estate that these entities own.”
With liquidity waiting to be drawn upon, added Thurston, sponsors of public non-listed REITs are also keen on showing “a track record of full-cycle returns to investors, which facilitates capital raising for their newly sponsored REITs.”
“I expect that 2015 will be a robust year for M&A activity in the public, non-listed REIT sector,” said Rosemarie Thurston, Alston & Bird partner and lead of the firm’s REITS and Real Estate Funds Team, noting that industry analysts have predicted between $15 billion and $20 billion of activity for these vehicles by year’s end. “Public, non-listed REITs are attractive to both private and public buyers due to the difficulty in assembling large portfolios of commercial real estate that these entities own.”
With liquidity waiting to be drawn upon, added Thurston, sponsors of public non-listed REITs are also keen on showing “a track record of full-cycle returns to investors, which facilitates capital raising for their newly sponsored REITs.”