New REITs File IPOs in Quest for Cash
A pair of real estate investment trusts (REITs) filed initial public offerings (IPOs) with plans to invest in residential and commercial mortgage-backed securities (MBS) and other real estate debt. Brookfield Realty Capital Corp. and Marathon Real Estate Mortgage Trust want to raise $500m and $300m, respectively, in the two IPOs, according to Securities and Exchange Commission (SEC) filings. Brookfield Realty Capital Advisors, a wholly owned subsidiary of Brookfield Asset Management (BAM), will advise the Maryland-based Brookfield REIT, and will originate, invest in and actively manage a portfolio of commercial real estate mortgage loans. The company also said in its filing that its plans may include corporate loans, mezzanine loans, CMBS, and debtor-in-possession financings. Marathon said it will invest predominantly in RMBS and residential mortgages and Marathon Asset Management will externally manage the REIT. Marathon Asset Management owns mortgage servicer and special servicer Marix Servicing. In its SEC filing, the REIT said it plans to use Marix’s experience to guide its decisions in acquiring distressed assets. Brookfield also said it plans include distressed assets in its portfolio. Credit Suisse (CS) and JPMorgan (JPM) are the underwriters for the Marathon REIT. Goldman Sachs (GS) is Brookfield’s underwriter. Write to Austin Kilgore.