Non-Traded Real Estate Investment Trust Shut Down
Considering that four of the top non trading Real Estate Investment Trusts have closed down for new investments and since more trusts are planning to do so by 2012, fundraising for non-traded Real Estate Investment Trusts is expected to see a decline by the next year. The four Real Estate Investment Trusts which closed for new investment prospects are American Realty Capital Trust, Cole Credit Property Trust III, Behringer Harvard Multifamily REIT I and CB Richard Ellis Realty Trust. As per the research conducted by MTS Research Advisors LLC, the four companies together managed to raise a huge amount of more than USD 3 Billion from the investors. Industry Experts believe that the closure of these Real Estate Investment Trusts will create opportunities of about USD 9 Billion per year for new non-listed Real Estate Investment Trusts. This changing scenario is a warning signal for all the brokers, dealers and registered representatives who now need to be more alert regarding the due diligence and other norms of their products. Also, another question which needs huge attention is the magnitude of success the other firms will achieve in the current market scenario. Before jumping in, the firm needs to properly analyze if they would be able to raise sufficient funds from the market.
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