Real estate investment trust, Parking REIT, which owns parking lots unveiled a $100 million initial public offering Tuesday as the company looks to pay off debts and expand an existing network of parking facilities across the U.S.
In a SEC filing with the U.S. Securities and Exchange Commission, Parking REIT set a $100 million maximum aggregate offering price. However, that $100 million figure may be a placeholder frequently used on initial IPO filings. Moreover, it is unclear whether investors will be able to sell their funds at or near their cost basis.
The Parking REIT is managed by Nevada-based The Parking REIT Advisors. The company invests in parking lots, garages and other structures in the U.S. Parking REIT said its primary use for the funds raised in the IPO will be the repayment of $9.1 million in debt, in addition to general corporate purposes, working capital and the acquisition of additional parking locations.
Accord
Established in 2015, Parking REIT said it is looking to capitalize on an industry that is “ripe for consolidation,” stating that 65 percent of all owners in the industry possess only one property.
Among risk factors listed by Parking REIT were the company’s limited operating experience, that it has previously recorded net losses and that it relies heavily on The Parking REIT Advisors to secure investment opportunities. The company has previously come under scrutiny and its principal, Michael Shustak has disclosed other regulatory investigations.