REITS Want Out of Cold Storage

Crescent Real Estate, Fort Worth, Texas, and Vornado Realty Trust, New York, are looking to disentangle themselves from AmeriCold Logistics, a provider of cold storage and transportation facilities.

The two real estate investment trusts are looking to raise medium-term bank financing of over $200 million and have engaged underwriters to explore the additional financing.

The REITs said that the money will allow them "to make a meaningful reduction of their investment in this business and will provide additional financing for expansion."

Atlanta-based AmeriCold is one of the many ventures that REITs got into after the REIT Modernization Act was enacted in 2001, giving them more leeway in pursuing facilitating activities. Most of these ventures have not met with success.

Copyright 2003 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.mortgageservicingnews.com

Next in News ►