Given IPC US REIT's 9.6 million-sf portfolio, its sale toBehringer Harvard translates to $145 per sf, which is below thecompany's net asset value. For example, industry sources sayBehringer Harvard allocated $36.3 million ($143 per sf) of the$1.4-billion purchase price to Bank of America Plaza, which IPC USREIT acquired in February 2005 for $72 million or $283 per sf.

David Dinniwell, EVP and CFO for the Toronto-based IPC US REITtold GlobeSt.com in August that the pure-play US office REITstarted to explore its options as value differentials narrowedbetween Canadian and US currency. It did consider remaining apublicly traded REIT. "But, our ability to grow with interest rateswhere they are right now was constrained," Dinniwell said.

The Canadian REIT upped its distribution percentage "numeroustimes" in the past five years to combat value differences,according to Dinniwell. "The value distribution when converted toCanadian dollars declined due to the appreciation of Canadiandollars since the inception of the REIT," he explained. "Our yieldsare considerably higher. It seems people haven't appreciated whatwe've done. It's a function of where our stock prices are tradingrelative to our distribution. The board decided it was an opportunetime to capitalize on current real estate value for unitholders."