August 29, 2012
If Canada’s IPO market is in the doldrums, the REIT sector doesn’t know anything about it. Nor do the small band of lawyers practising in the area.
On Aug. 8, HealthLease Properties Real Estate Investment Trust rang the opening bell on the TSX to signal the launch of Canada’s largest IPO this year. The IPO was also Canada’s first "pure play" REIT in the seniors housing sector.
HealthLease, however, wasn’t an anomaly. From the beginning of 2012 to the end of July, the Canadian REIT market, including non-convertible debt and preferred share issues, featured about $4-billion worth of offerings, up from about $3.2-billion during the same period in 2011. If non-convertible debt is excluded, the comparable numbers are $3-billion and $2.4-billion.
"Quite apart from IPOs, existing REITs have been issuing a lot of successful offerings that have been oversubscribed, and there are quite a few new issues on the drawing board," says Patricia Koval. "The future continues to look bright because the demand for residential, retail and commercial tenancies is strong and is expected to remain strong."
Read the full article here.