ECM Realty Trust Plans $380M IPO of Net Lease REIT

The Wall Street Journal - August 26, 2010

ECM Realty Trust Inc. plans to sell up to an estimated $380 million in shares through an initial public offering of its stock to repay debt and make acquisitions.

The commercial real-estate company will own 39 net leased properties when the IPO is completed and aims to become a real-estate investment trust, according to a filing with the Securities and Exchange Commission.

The number of IPOs in the pipeline continues to rise, though the number being completed is lower, with a series of companies cutting prices or pricing below their expected ranges. Meanwhile a number of real-estate concerns have been raising capital while hoping to acquire properties while the market is weak.

Potential acquisitions in ECM's pipeline have an estimated total purchase price of more than $400 million.

The company's initial properties were 100% leased as of June 30, with no lease expirations until 2015. Most of its office properties are corporate or regional headquarters, while its industrial properties are "significant regional or critical hub distribution facilities" and the "substantial majority" of the retail properties are in "high-performing locations."

For the first half of this year, ECM's loss widened to $1.5 million from $138,000 amid acquisition costs while revenue rose 1.6% to $14.3 million.

The company intends to apply for listing on the New York Stock Exchange under the symbol ECMR. Sphere: Related Content