Macquarie, CNL Team Up to Launch Global REIT

By Allen Kenney

CNL Financial Group Inc. and Macquarie Group Limited are partnering to form a new global REIT.

The new company, CNL Macquarie Global Growth Trust Inc. is a publicly registered, non-traded entity that intends to qualify as a REIT. For its initial public offering, the REIT plans to sell $1.5 billion in common shares at a purchase price of $10.00 per share. 

With up to 30 percent of its portfolio located outside the United States, CNL Macquarie Global Growth Trust will focus on acquiring a broad spectrum of property types.
The REIT will place an emphasis on obtaining assets "requiring repositioning or redevelopment, those facing time-sensitive deadlines or located in markets undergoing positive changes, those requiring new leasing or management strategies, and those with deferred maintenance needs," according to its filings with the Securities and Exchange Commission.
Curtis McWilliams, president of CNL Macquarie Global Growth Trust, said now is "the perfect time to raise money to buy real estate on a global basis." He noted that credit market issues have already created "tremendous" opportunities for investment in commercial real estate worldwide, with more to follow as the global economy recovers from the ongoing recession.
McWilliams said the new REIT would be in the market for distressed assets, as well as properties where it believes "positive demographic, political or structural changes" would create attractive investment opportunities.
"By 'positive changes,' we mean markets that we believe will have very strong demographic growth or are currently expected to experience improving economic or political stability – all of which will help us meet our asset value growth objectives," he said.