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Public to Private Move Facing Five-Year Trend

NEW YORK CITY-With 216 REITs on the playing field, the latest trend of public companies going private may be the market waning itself down.

By Melissa Kress | Updated on November 29, 2006

(To read more on the debt and equity markets, click here.)

NEW YORK CITY-As Sam Zell explains, the REIT market was created in the mid-’90s out of necessity–financing options had stopped cropping up and the real estate industry had only the public markets. In the past 14 years, REITs have gone from a $6-billion industry to an $8-billion industry. Now, the way Zell sees it, the latest trend of public companies being taken private is the “ultimate validation of everything we’ve done over the past 13 to 14 years.”

And Zell, speaking at NYU’s 39th Annual Conference on Capital Markets in Real Estate, should know. Last week, the Blackstone Group made headlines with its move to take Equity Office Properties private in a $36-billion transaction. Zell is founder of EOP. “We created an environment where there is actually bidding for control of real estate companies,” he said. And that environment is not limited to small companies, he added.

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