Deals
Discounts in U.S. Property Stocks Set Stage for Buyout Spree
- More takeovers may follow Strategic Hotels, BioMed deals
- REIT shares offer 15% discount to buying individual buildings
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Get ready for a wave of takeovers of U.S. publicly traded landlords.
Real estate investment trusts-- companies that own properties such as luxury hotels, office towers and shopping malls -- are trading at an almost 15 percent discount to what investors would pay for buildings individually, according to Green Street Advisors LLC. The gap, the biggest in five years, has been growing since May, pushing the odds of REIT buyouts to the highest since 2006, the property-research firm’s data show.