KBS REIT, a private real estate investment trust based in Newport Beach, Calif., today launched an offering for its second fund, the KBS Real Estate Investment Fund II.
It will offer up to 200 million shares at $10, with the proceeds being used to acquire and operate commercial real estate and real estate-related assets in the United States, including office, industrial and retail properties.
The fund will close to investors in about two years and have a life of five to seven years.
Shares of non-traded REITs, such as KBS, don’t trade on any national stock exchange.
They operate similarly to closed-ended funds in that they purchase assets that will be held for a fixed period of time and will either liquidate or do an initial public offering at the end to exit the fund. Along the way, the fund distributes an attractive dividend to shareholders, similar to publicly traded REITs.
Because their shares aren’t affected by daily fluctuations and sell-offs in the broader market, non-traded REITs are viewed as safe, stable investments.
KBS REIT launched its first fund, the KBS Real Estate Fund I, in January 2006.
The fund, which has about $2 billion in assets and closed to investors on May 30, offers a dividend yield of 7%% and has a life of five to seven years.
No comments:
Post a Comment