Assume the following -
Example - REIT A would like to buy REIT B with a $100M Market Cap. However, REIT A would only like to own up to 75% of REIT B and syndicate out the remaining $25M. Therefore, REIT A retains retains 75% ownership of REIT B and syndicates out the remaining 25% to REIT C. This scenario assumes that REIT A retains 75% of ownership shares of REIT B, which is a subsidiary, and REIT C acquires 25% of ownership shares of REIT B, which is co-owned with REIT A. Obviously this is somewhat complex and/or confusing so feel free to ask follow-up questions.
Questions -
1. Legally - (1) Are REITs allowed to do this?, (2) If so, are the any examples of REITs successfully doing this
2. From a Shareholder perspective - (1) Would this be viewed unfavorably by shareholders due to the added layers of complexity to the master REIT entity?
The Duke of Wall Street, have you checked out these or run a search:
Maybe one of our professional members will share their wisdom: aproncao dinoRE Dlondon4545
You're welcome.
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