Revenues from nontraded REITs for 2013 surpass previous highs

By Marc Castro

Sep 17, 2013 04:03 PM EDT

For August, investors placed USD2.2 billion into nontraded real estate investment trusts. This figure places the 2013 fundraising well past its full year record. WIth this, money is being returned into the industry after payouts have been made for the takeovers and other public offers.

Overall, in 2013, nonlisted equity REITs have collated USD12 billion this year, according to a report released by the Investment Program Asssociation, This Ellicott City, MD based trade group was joined by Robert A, Stanger & Co., the investment bank in the report. The previous record of USD11.5 billion raised in 2007 was already surpassed this year, according to Stanger's President and Managing Director.

The normal course of investment would see shareholders who received funds from nontraded REITs that were acquired or had moved they shares to other bourses, are returning their money to nonlisted trusts. These REITs have a set timeline and are primarily marketed by brokers or individual investors. 

Amongst the biggest real estate deals for the year have been nontraded REITs, such as American Realty Capital Properties and WP Carey Inc.

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