The IPO calendar for 2011 has already begun to build with two deals scheduled to list on the NYSE next week. The two REITs, which announced terms for their upcoming deals on Monday, are both headquartered in San Diego and primarily focused on the California and Hawaii markets.
American Assets Trust (AAT), a full service REIT with an initial portfolio of 20 retail and office properties, plans to raise $500 million by offering 25 million shares at a price range of $19-$21. At the mid-point of the proposed range, the REIT will command a market value of $1 billion. American Assets Trust, which was formed to succeed to the real estate business of privately held American Assets, Inc., booked $196 million in pro forma sales in 2009. The REIT plans to list under the symbol AAT with BofA Merrill Lynch, Wells Fargo Securities and Morgan Stanley acting as the lead underwriters on the deal.
Pacific Office Properties Trust (PCE), which owns 8 office properties and interests in 16 joint venture properties, plans to raise $352 million in its IPO by offering 44 million shares at a price range of $7.50-$8.50, as well as an additional $12 million from a concurrent private placement to members of management. At the mid-point of the proposed range, Pacific Office Properties Trust will command a market value of $437 million. Pacific Office Properties Trust, which is currently listed on the NYSE Amex, was formed in 2008 through a reverse merger into publicly traded Arizona Land Income Corporation (ASE: AZL) as a continuation of The Shidler Group. The REIT booked $117 million in pro forma sales in 2009 and plans to list under the symbol PCE. Credit Suisse, Wells Fargo Securities and Citi are the lead underwriters on the deal.
In addition, media giant Nielsen Holdings (NLSN) is rumored to begin marketing for its IPO as early as next week. Nielsen, a global leader in television audience measurement with a presence in 100 countries, plans to raise as much as $2 billion in its offering. A successful Nielsen IPO could motivate other private equity-sponsored IPO candidates such as Toys "R" Us (TOYS; $800 million) and HCA (HCA; $4.6 billion) to come to market.
