X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

TROY, MI-Delphi Corp. of Troy, MI, one of the largest automotive suppliers in the world, has filed with the U.S. Securities and Exchange Commission to create a realestate investment trust.

Paula Angelo, manager of financial communications, told GlobeSt.com thatcreating a REIT is not an unusual action. “Historically, companies find a REIT is a cost-effective way to raise funds,” Angelo said.

The company hopes to raise up to $345 million through the sale of preferredstock, held up by 14 Delphi properties, Angelo said. Delphi would pay renton the properties, which would then be filtered to the REIT’s stockholders.

The REIT, known as Delphi Properties Inc., would have the symbol DPS on theNew York Stock Exchange.

Partly, the REIT creation was an attempt to help pay for pension funds forthe company, Angelo said. The company is contributing about $250 million outof the company’s operating cash flow to the pension fund in the secondquarter, she said. The company owed $4 billion to the pension fund at theend of 2002.

Angelo said she could not comment on future plans for the REIT, or whetherthe REIT was a smart investment in the current economy. “Because we are awaiting SEC approval, there’s only so much we can discuss about the REIT,” Angelo said.

The company’s Automotive Holdings Group reported 2001 and 2002 revenues of$3.7 billion and $3.6 billion respectively, and operating losses of ($248)million and ($375) million respectively. Delphi laid off more than 17,000workers in the last two years, and closed five facilities.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.