The Real Deal New York

JLL, LaSalle readying $3B stock offering for non-traded REIT

The company plans to use the money to pay back loans and buy back stock
By Christian Bautista | July 03, 2018 02:13PM

Allan Swaringen and the Chicago Skyline (Credit: LinkedIn and Pixabay)

UPDATED: July 5, 3:32 p.m.: Jones Lang LaSalle and its asset management arm LaSalle Investment Management are looking to raise up to $3 billion in a stock offering for one of its non-listed real estate investment trusts.

According to documents filed with Securities and Exchange Commission, JLL Income Property Trust is looking to sell four classes of common stock with prices ranging from $11.82 to $12.14. The company plans to use the funding to grow its portfolio, pay back loans and fund its share repurchase plan. JLL estimates proceeds at $2.9 billon after selling commissions.

The fundraising adds another billion-dollar-plus target for the company’s investment vehicles. Last April, it was reported that LaSalle Income & Growth Fund VIII, a unit of LaSalle Investment Management, plans to raise $1 billion in a private fundraising effort. The seventh iteration of the fund, which closed in 2017, raised $510 million in financing.

In an interview with Commercial Observer, CEO Allan Swearingen said the REIT generally taps high-net-worth investors, with investment minimums at $10,000. The average investor puts $100,000 into the fund, he said.

The offering comes as rivals Cushman &Wakefield and Newmark Knight Frank tap the public markets. Cushman, which has been flirting with going public for the past two years, filed paperwork for an IPO in June. Newmark, meanwhile, commenced its $615 million IPO in December.

The JLL REIT, which went public in 2012, owns 69 properties in 19 states. Its biggest holdings are in residential and industrial properties. The segments accounted for approximately 8.2 million square feet and 48 percent of the estimated value of the company’s portfolio. As of June 29, the company’s 65 million shares were held by a total of 12,806 shareholders for a total of $1.6 billion in gross proceeds.

The article was updated to include LaSalle Investment Management’s involvement in the stock offering.