According to the firm's third-quarter financial report, REI plans to hold onto the assets to maximize shareholder value and not sell them based on pressure in a volatile market. However, REI will sell some properties if they provide favorable returns.
"REI Global will not be forced to sell assets below what it perceives their intrinsic value," said Ian Lowitt, Lehman's CFO, during the firm's earnings call.
Though the new entity will be a long-term holder of commercial real estate, Lowitt said during the call this morning that he does not expect it to be structured as a REIT.
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