In a filing last week, KBS REIT II's advisor announced its waiving any internalization fee in the event the REIT becomes self-managed through a merger/consolidation with its advisor. This is another example of a large, non-traded REIT sponsor foregoing a potentially large - but controversial - payday that typically comes at the expense of investors. I'm wondering whether this is the first step in KBS REIT II's process to provide liquidity to investors.
Separately, Wells Core REIT announced that it will close its offering next summer when its original offering term ends. A follow-on offering would have extended the REIT's offering period an additional two years, making it a total of five years. Wells REIT II has raised nearly $400 million in investor equity, and has approximately ten months remaining to complete its offering. It's good that Core is skipping the ugly share revaluation process - and subsequent marketing push - that has further stained the non-traded REIT this year.
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8 comments:
One of the 10 biggest non-traded reits went full cycle nearly two weeks ago. Any thoughts?
Cole Credit Properties Trust II finally went full cycle? (Ha!) Seriously, what REIT went full cycle?
Cpa15
Went full cycle or was acquired by an affiliate? I don't think that WP Carey deserves much credit for that transaction - it's not like it was driven by investor appetite.
An example would be if Joe built his own computer part by part and then sold it for $100 to a company that he (Joe) also owns. Joe claiming the computer is worth $1000 is not really a fair valuation of the computer is it?
Spectator- If Joe's "other company" was publicly traded on the NYSE and traded up after the deal, I would have to say the valuation was pretty fair...
I agree...in all their other deals that were rolled up into their next offering, there was no way to tell if the emperor had no clothes....in this case the market is the great equalizer... this deal looks like the real thing.
Any comments on the recent news of the ARCT $63m subordinated incentive fee that they just collected?
Seems that contradicts the title "Doing the Right Thing"
I will have a longer post on the subordinated incentive fee. Shorter version: fee was paid after investors received return of capital and a return on investment, so it's low on the outrage scale.
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