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 weeks 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 dont 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 thats a huge positive and will be a driver of
future Reit origination....