More Big Players Move into the Non-Traded REIT Market
Non-traded REITs will raise about $30 billion this year, roughly triple the volume of capital raised in the sector in 2020.
August 30, 2021 | Beth Mattson-Teig | WealthManagement.com
As Brookfield Asset Management Inc. prepares to launch a non-traded REIT offering in the fourth quarter it joins the ranks of other high-profile firms who have also recently raised capital in the space.
The new REIT, Brookfield Real Estate Income Trust Inc., will consist largely of properties gained from its 2019 purchase of Oaktree Capital Management. “I think what they have seen is that this is an interesting space. It’s got a lot of interest from investors and there is quite a bit of capital being raised,” says Kevin Gannon, chairman and CEO of Robert A. Stanger & Company Inc. The investment banking firm is advising Brookfield on various aspects of the non-traded REIT sector.
Brookfield isn’t the only new entrant this year. KKR and Invesco both have debuted non-traded REITs this year, and there are a couple of other major entities that are contemplating entering the space, notes Gannon. In part, these companies are taking notice of the recent capital raising success. Robert A. Stanger is predicting that non-traded REITs will raise about $30 billion this year—triple the volume of 2020 and about one-and-a-half times the capital raised a couple of years ago. “I think you’re seeing these asset managers that want to attract that kind of capital,” he adds.
