(To read more on the debt and equity markets, click here.)

LOS ANGELES-CB Richard Ellis Investors plans to raise $2 billion through an offering by a REIT called CB Richard Ellis Realty Trust that would invest in properties in the US and possibly overseas, according to a filing with the Securities and Exchange Commission. The REIT's shares initially "will not be listed for trading on any securities exchange or over-the-counter market," according to the filing, but would be held by the investors through an arrangement similar to those of other REITs that invest in commercial properties but do not trade publicly.

CBRE Investors is in a quiet period following the registration statement for the offering, but the SEC filing says that CB Richard Ellis Realty Trust, which originated in 2004 with a private placement offering of $55.5 million, plans to invest the proceeds of its REIT offering in office, retail, industrial and multifamilyproperties in "a portfolio of geographically diverse assets." It intends to qualify as a REIT for federal tax purposes.

The trust may invest up to 30% of its assets outside of the US. If it does, "investments outside of the US will be focused in areas in which CBRE Investors has existing operations or previous investment experience, which today consist of Western Europe and Japan," the filing states.

One reason for looking outside the US for investments, according to the filing, is that "in addition to opportunities in the US, we also believe that international real estate markets provide investors with an opportunity to diversify their portfolio with an investment that may provide returns that are less correlated to the returns of the equity, bond and real estate markets of the US."

Some 90% of the shares in the new REIT will be priced at $10 per share, with the remaining 10% to be offered according to a formula based on its dividend reinvestment plan. The filing names CNL Securities Corp. as the dealer-manager for the offering, which will require a minimum investment of $5,000 and will end within two years.

Under the heading of "exit strategies," the filing says that CB Richard Ellis Realty Trust does not intend to list its shares before 2009. "If our shares are not listed for trading on a national securities exchange or included for quotation on an over-the-counter market on or prior to Dec. 31, 2011," the filing says, trust's board will consider a liquidation of its assets that would be subject to shareholder approval.

Instant Insights /

CBRE Investors Plans $2B REIT Offering

Related Stories

Recommended For You