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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: David Alon who wrote (3683)	7/21/2002 12:27:42 AM
From: David Alon	Read Replies (1) \| Respond to of 11633

InnVest Trust prices IPO for 11.25% yield, raises $300M Higher rate than others Garry Marr National Post Friday, July 19, 2002 ADVERTISEMENT InnVest Real Estate Investment Trust has priced its initial public offering for an 11.25% yield, raising $300-million. The 11.25% is in the middle of the 11%-to-11.5% range InnVest had been considering but higher than any yield for REITs that are currently trading. Like most REITs, InnVest will be priced at $10. InnVest's portfolio will consist of 114 Canadian hotels with 11,602 rooms. The REIT has a 50% stake in Choice Hotels Canada, the largest franchisor of hotels in Canada, whose brands include Quality Inn, Comfort Inn and Quality Hotel. In turn, InnVest will own about 38% of the Canadian Choice-branded hotels. "The size of the offering and the fact it is in the hotel sector have played a part in the pricing," one real estate analyst said of the high yield. Last month, Northern Property REIT had to raise the yield on its $66-million IPO to 11.5% after it was originally priced to yield between 9.5% to 10.5%. "If [the yield] had been lower it probably would have sold but it would have been slower," said Debra Boyle, chief financial officer of Northern Property. In the case of her REIT, the small size and the offering and the fact the product is property in the Northwest Territories, Nunavut and northern Alberta made it a tougher sell. InnVest is facing the fact it is making a larger offering, and one more difficult to sell thanks to the slumping hotel sector. "You want to be assured the units are not going to go down right away too," said another analyst about the pricing. Northern Property's units immediately moved up after the units went public. The yield was down to 10.2% at the end of June. © Copyright 2002 National Post Return to search results