REITs Seek to Reduce Ties to AmeriCold

Crescent Real Estate Equities Co., Fort Worth, Texas, and Vornado Realty Trust, New York, are looking to disentangle themselves from AmeriCold Logistics, a provider of cold storage facilities.The two real estate investment trusts are seeking to raise medium-term bank financing of over $200 million and have engaged underwriters to explore the additional financing. The REITs said 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 started by REITs after the REIT Modernization Act was passed in 2000, giving them more leeway in pursuing facilitating activities. Most of these ventures have not met with success. Crescent has a 40% stake in AmeriCold, and Vornado a 60% stake in the business.