SEC Gives Nod to RREEF's $2.5B REIT Plan

NEW YORK CITY-Nine months after the initial registration for what is now known as RREEF Property Trust, the Securities and Exchange Commission has declared effective the registration statement for a public offering of up to $2.5 billion in common stock. Net proceeds from that offering will be used to acquire a diversified portfolio of income-producing properties across the major food groups, RREEF, which will externally manage the trust, said late Thursday afternoon. A spokeswoman for Deutsche Bank, RREEF’s parent company, told GlobeSt.com the timing on the offering hadn’t been finalized.

Along with properties in primary and secondary markets across the US, RREEF Property Trust intends to buy stock in publicly traded REITs and other real estate companies, as well as debt backed by real estate, including CMBS and mezzanine loans. “We believe that our diversified investment strategy will allow us to achieve reasonably predictable and stable current income, which will provide a principal source of return for our investors, along with the potential for long-term capital appreciation in our net asset value,” according to the REIT’s initial registration statement, filed last March under the name RREEF America Property Income Trust Inc.