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.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.