Washington Business Journal - Office Building Sales In 2015
NEW YORK, Jan 27 (Reuters) – Stock in Government Properties Trust (GPP.N: Quote, Profile, Research) , a real estate investment trust specializing in leasing offices to the U.S. government, soared more than 30 percent in its debut on the New York Stock Exchange on Tuesday.
In early-morning trading, the shares stood at $13.30, up $3.30, or 33 percent, from the initial public offering price of $10 set on Monday night. “Real estate IPOs have done fairly well recently,” said John Fitzgibbon, editor of 123jump.com, an online IPO newsletter. “The political situation has become apparent, with the Fed telling us they won’t raise interest rates, so people are confident (about real estate investment) in this climate.” Omaha, Nebraska-based Government Properties Trust had estimated that its IPO of 16.8 million shares would price in the range $9-$11 per share. It has said it will use proceeds for working capital and to repay outstanding debt to Genesis Financial Group.
Friedman, Billings, Ramsey was the bookrunner for the IPO, with co-managers BB&T Capital Markets and Flagstone Securities LLC. Government Properties Trust buys and manages recently built or renovated office properties primarily leased to the federal government. Its tenants include the Department of Justice, the Drug Enforcement Administration, the Federal Bureau of Investigation and the Social Security Administration.