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REITs roar into 1998
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December 29, 1997: 2:11 p.m. ET
Wave of IPOs for real estate investment trusts expected to continue in new year
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NEW YORK (CNNfn) - As 1997 winds to a close, IPO watchers are looking ahead to the new year - and what they seeing are a plethora of real estate investment trusts.
Among them will be Resource Asset Investment Trust, which buys loans secured by nonstandard mortgages. Set to price this week - originally it was to be last week - the offering is expected to raise $113 million, or $15 a share. The underwriter is Friedman, Billings, Ramsey, which completed its own public offering last week.
Friedman is behind two other REITs set to price in January: Wilshire Real Estate Investment Trust and Capital Automotive REIT. Wilshire, which focuses on distressed mortgage loans and properties, is expected to price late in the month at between $14 and $16, raising an anticipated $300 million.
With a proposed ticker symbol of "CARS," Capital Automotive REIT invests in properties used by car dealers in metropolitan areas. The company hopes to raise $225 million at $15 a share.
In late January, Merrill Lynch will lead Eldertrust in an offering expected to raise $136 million offering, or $20 per share. The REIT plans to use its IPO proceeds to invest in 21 assisted and independent living facilities, skilled nursing facilities and medical office buildings.
REITs aren't the only IPOs on the horizon.
Other notable deals include Apollon's $30 million dollar offering, which is expected to price this week. The Pennsylvania-based company develops gene-based medicines and vaccines, a rapidly growing sector of the pharmaceutical industry.
Other notable deals in early January include:
- Paradigm Geophysical, which produces exploration and depth-imaging software for the oil and gas industries. The company hopes to raise $45 million at $11 a share.
- Nationwide Staffing, which provides temporary workers in a wide range of industries ranging from aerospace and technology to food processing. The company hopes to raise $49 million at $13 a share.
- Duane Reade, the well-known drugstore chain. Donaldson, Lufkin & Jenrette is leading the offering, whch seeks to raise $115 million.
- Baltia Air Lines, a full-service commercial, passenger, cargo and mail transportation carrier between New York and the former Soviet republics. The company will offer its shares at $6 in hopes of raising $6 million.
- Valley Forge Dental Associates, which provides management services to the dental industry in eight states. No details on the deal's size have been released yet.
-- by Bambi Francisco for CNNfn Interactive
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