X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONG BEACH, CA-HCP health care properties REIT has set the price at $24.75 per share for its public offering of 15.5 million shares of common stock, which is expected to raise proceeds of approximately $384 million. The company plans to use the proceeds of the offering to repay debt, including borrowings from the company’s credit line that were applied toward the cash payment of $165 million for HCP’s purchase of a stake in first mortgage debt of HCR ManorCare. The remainder of the proceeds will be applied to general corporate purposes.

The offering of 15.5 million shares was upsized from the originally announced 11.5 million shares due to investor demand, HCP says. The underwriters also have an option to purchase up to 2.3 million shares within 30 days.

The new HCP offering is the latest in a series of new stock offerings by REITs, which have been raising substantial amounts of capital despite the recession and capital markets conditions that have been in turmoil. Earlier this year, HCP completed a $440-million public offering of common stock, with proceeds also used to repay debt.

Although investors favor health care and medical office-related properties in the downturn, REITs in other property segments have been raising funds as well. Analyst Craig Silvers, president of Los Angeles-based Bricks & Mortar Capital, which invests in REITs and other publicly held real estate companies, told GlobeSt.com recently that REITs and other public real estate companies have been able to raise capital lately because of investors’ long-term confidence in real estate. “People have realized that corporations need real estate, and that despite the tight credit markets, real estate is a necessity and they are willing to loan on it at the right price,” according to Silvers. In terms of stock offerings, investors realize that they are buying at historically low prices, Silvers said.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

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 © 2021 ALM Media Properties, LLC. All Rights Reserved.