"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 month'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 Bennet at UBS. "I think that's a huge
positive and will be a drive of future Reit origination."
Bennet also pointed out the quality of sponsors behind
Reits. Colony Capital...