“In the midst of the financial crisis, one would never have believed that a mortgage investment vehicle, least of all one with the chequered history of Reits, would become popular in 2009. But lo and behold, it is,” said Tom Humphreys, partner at Morrison & Foerster, at last week’s IFLR web seminar. There have been at least 14 filings for new mortgage real estate investment trusts (Reits) this year, and over the summer several floated, raising over $2 billion.
One reason Reits have been so popular is the illiquidity of other means to invest in real estate. “They give investors real access. Even if you don’t like the price you can generally find your way out,” said Halle Benett, managing director and co-head of at UBS' Americas business. “I think that’s a huge positive and will be a driver of future Reit origination.”...