DALLAS-Behringer Harvard Inc., capping a year of planning, has hit the streets with a $400-million IPO aimed at acquiring investment-grade product of all type in volatile markets. The investment group's second REIT and yet another opportunistic fund is a two-year offering.
"It's a REIT with a very different time horizon," says M. Jason Mattox, senior vice president for the Dallas-based Behringer Harvard. The plan is to sell 40 million shares at $10 apiece to raise capital for US real estate acquisitions with a three- to six-year hold. The existing REIT is structured with an eight- to 12-year holding period. Behringer Harvard also is offering eight million shares of common stock for $9.50 apiece through its distribution reinvestment plan.
"Interest has been strong in our previous opportunity-style funds and we expect it to be strong in this fund," Mattox tells GlobeSt.com about the blind pool, Behringer Harvard Opportunity REIT 1 Inc. He anticipates most of the real estate will be in the Sunbelt, but not necessarily situated along the hurricane-ravaged Gulf Coast.
Mattox says the deal size most likely will be $10 million and up due to the stipulation that the pool is only for investment-grade properties, preferably new or under construction. And, he adds, the door will be open to all real estate opportunities, including condo conversions once the capital is in hand to let the buying begin.
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