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REIT Deals Watch:Aviv Prices IPO at $18 to $20 Per Share

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**Aviv REIT Prices IPOat $18 to $20 Per Share**

Aviv REIT, a Chicago-based REIT specialising in owning and acquiring skilled nursing facilities, announced the terms of its initial public offering on Monday, March 11. The company plans to raise $251 million (₤169 million) by offering 13.2 million shares in the price range of $18 to $20 (₤12.08-₤13.43) apiece. At $19 (₤12.76) a share, the midpoint of the proposed range, Aviv would have a market capitalisation of $908 million (₤610 million). The REIT said it plans to use the net proceeds from the offering to repay certain debt and for general corporate purposes, including future property acquisitions.

Bank of America/Merrill Lynch, Goldman Sachs and Morgan Stanley are acting as joint book-running managers of the offering, while RBC Capital Markets, RBC, Citigroup, CSCA and Sun Trust Robinson Humphrey will be co-managers. The shares will be floated on the New York Stock Exchange under the symbol“AVIV”.
The real estate investment trust is one of the largest owners of skilled nursing facilities and has a portfolio of about 258 properties that are triple-net leased to 38 operators in 29 states.

**CommonWealth Completes Divestment from GOV**
Government Properties Income Trust (NYSE:GOV), a Massachusetts-based REIT, announced on Tuesday, March 12 that CommonWeath REIT (NYSE:CWH) has completed its divestment from GOV through the sale of 9.95 million common shares in an underwritten public offering at a price of $25.20 per share. CommonWealth has agreed to cover all the transaction costs and Government Properties Income Trust will not receive any of the proceeds from the sale. The settlement of the sale is expected to take place on March 15, 2013.

Government Properties Income Trust’s share price declined by 5.35 percent to $25.10 in afterhours trading on the New York Stock Exchange.
**Strong Demand for AscendasREIT Share Placement**
Ascendas (SGX:A17U), a real estate investment trust based and listed in Singapore, raised on Friday, March 8,S$406 million (₤272 million) of fresh equity that will be used towards the funding of two new property acquisitions. The placement attracted S$1.3 billion (₤700 million) of demand from more than 100 institutional investors, allowing for the over allotment option to be exercised in full and the price to be fixed at the top of the offering range.

Ascendas sold 160 million new units or 7.1 percent of the existing share capital. The shares were offered in a pricerange of S$2.50 toS$2.55 apiece, and priced at S$2.54,which represents a 4.2 percent discount to Thursday’s closing price of $2.65.
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The REIT will use part of the funding for the purchase of a multi-tenanted property located in Singapore Science Park II. The cost of the building is estimated at some S$126 million (₤68 million). Another S$270 million (₤145 million) will go towards the purchase of an integrated industrial mixed-use property that is currently under construction and is located on the Kallang Avenue, at the fringe of Singapore’s Central Business District. The rest of the funds will go towards working capital and other general corporate purposes.
Ascendas is a business space and industrial REIT with a portfolio of about 101 properties in Singapore and one property in China. Shares in the company were flat at S$2.58 on Tuesday at 07.15 GMT.
**Government Properties Income Trust’s share price was $25.10 as of 06.35 GMT, 12.03.2013.**
**CommonWealth REIT’s share price was $22.15 as of 06.50 GMT, 12.03.2013.**
**Ascendas REIT’s share price was S$2.58 as of 07.15 GMT, 12.03.2013.**

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