REIT M&A Activity Likely to Remain Robust in 2019

Daniel LeBey, partner, capital markets and mergers & acquisitions at Vinson & Elkins LLP, participated in a video interview at Nareit’s REITwise: 2019 Law, Accounting & Finance Conference in San Antonio.

LeBey discussed why REIT IPO activity has been slow, noting that a rising interest rate environment can create headwinds in the REIT capital markets. He also touched on the convergence of technology and real estate and how that is impacting new development.

LeBey said that if the REIT IPO market continues to be soft, he expects to see robust REIT M&A activity this year. In fact, Park Hotels & Resorts (NYSE: PK) announced in May 2019 that it would purchase Chesapeake Lodging Trust (NYSE: CHSP) in a $2.7 billion deal.

“There’s about $1 trillion of private equity capital looking for acquisition opportunities, and so that will also drive transaction activity within the sector,” he said.