NEW YORK CITY—Newly formed Aspen REIT intends to be the first single-asset real estate investment trust to list on a major US exchange. The company said Monday it had filed with the SEC to launch an initial public offering, from which it anticipates $33.5 million in gross proceeds.
The Company plans to offer 1.675 million shares at $20 apiece and intends to apply to list its common stock on the New York Stock Exchange under the ticker symbol “AJAX.” Aspen plans to use most of the net proceeds from the IPO, along with equity in its subsidiary operating partnership, to acquire a 100% indirect interest in the St. Regis Aspen Resort, which opened in Aspen, CO in 1992 under the Ritz-Carlton flag.
“Historically, the chance to own a portion of an individual property of this caliber and stature was only available to institutions,” says Stephane De Baets, Aspen REIT's CEO and president. “With our offering, we are changing this model while at the same time providing individual investors with liquidity optionality for a single-asset investment. Our value proposition is innovative and, we believe, highly compelling.”
A veteran hospitality investor, De Baets is affiliated with the St. Regis Aspen's current ownership, according to Aspen REIT. Published reports say that 315 Dean Associates Inc. bought the St. Regis for $70 million in September 2010, represented by De Baets' Bangkok-based OptAsia Capital Co. Ltd. The 179-key luxury hotel is managed by a subsidiary of Marriott International Inc.
De Baets calls the planned IPO “a first-of-its-kind real estate offering that provides individual investors with the opportunity to own shares in a highly attractive, trophy asset in the St. Regis Aspen Resort.” Maxim Group LLC will act as the lead managing selling agent for the offering.
The Company plans to offer 1.675 million shares at $20 apiece and intends to apply to list its common stock on the
“Historically, the chance to own a portion of an individual property of this caliber and stature was only available to institutions,” says Stephane De Baets, Aspen REIT's CEO and president. “With our offering, we are changing this model while at the same time providing individual investors with liquidity optionality for a single-asset investment. Our value proposition is innovative and, we believe, highly compelling.”
A veteran hospitality investor, De Baets is affiliated with the St. Regis Aspen's current ownership, according to Aspen REIT. Published reports say that 315 Dean Associates Inc. bought the St. Regis for $70 million in September 2010, represented by De Baets' Bangkok-based OptAsia Capital Co. Ltd. The 179-key luxury hotel is managed by a subsidiary of
De Baets calls the planned IPO “a first-of-its-kind real estate offering that provides individual investors with the opportunity to own shares in a highly attractive, trophy asset in the St. Regis Aspen Resort.” Maxim Group LLC will act as the lead managing selling agent for the offering.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
