- Joined
- Aug 26, 2010
- Messages
- 380
Looking at the REIT's out there and the big portfolio holders, there seems to be only a small handful of ways large portfolios were put togethor and they all hinge around different ways to gather the capital necessary to establish the momentum and growth rates that will get you to a certain size.
The ways I can think of are:
1 - direct personal ownership rolling over to a REIT - you either have or can access a lot of capital or you find individual JV partners to put togethor a large enough portfolio you control to roll over into a small REIT and grow from there through access to private or public capital markets
2 - pooling existing asset contributions from other owners - Killam supposedly followed this to start - created a corporate structure and convinced owners to put their buildings into it in return for shares and cash (maximising exit value and exit options for the owners).
3 - finding and pooling capital from investors to grow a syndicate or LP or several of these to the minimum asset size necessary to be a REIT. Private REITs like Skyline/Centurion/IGW seem to be able to develop very rapidly within the space of only a few years, so that minimum size can't be too large.
Can anybody think of any other ways really large portfolios get put togethor?
Thanks
The ways I can think of are:
1 - direct personal ownership rolling over to a REIT - you either have or can access a lot of capital or you find individual JV partners to put togethor a large enough portfolio you control to roll over into a small REIT and grow from there through access to private or public capital markets
2 - pooling existing asset contributions from other owners - Killam supposedly followed this to start - created a corporate structure and convinced owners to put their buildings into it in return for shares and cash (maximising exit value and exit options for the owners).
3 - finding and pooling capital from investors to grow a syndicate or LP or several of these to the minimum asset size necessary to be a REIT. Private REITs like Skyline/Centurion/IGW seem to be able to develop very rapidly within the space of only a few years, so that minimum size can't be too large.
Can anybody think of any other ways really large portfolios get put togethor?
Thanks