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.
Headquartered at 345 Park Ave. here, the newly minted investment trust will take the form of a perpetual-life, non-exchange traded REIT, meaning that it will sell shares of common stock on a continuous basis and for an indefinite period of time. Additionally, after the escrow period, the REIT will sell shares at a price based on the NAV of its underlying assets, according to the March 2012 SEC filing.
“We believe that our structure as a perpetual-life REIT will allow us to acquire and manage our investment portfolio in a more active and flexible manner because we will not be limited by a pre-determined operational period and the need to provide a “liquidity event” at the end of that period,” according to the filing.
RREEF Property Trust’s common stock will initially be priced at $12 per share, plus applicable selling commissions. Along with the $2.5-billion primary offering, the REIT filed to sell $250 million in shares that would be sold pursuant to its distribution reinvestment. RREEF also sponsors RREEF America REIT II and RREEF America REIT III.