CNL Financial Group (CNL) has launched CNL Properties Trust Inc., a fund that intends to qualify as a public, non-traded real estate investment trust (REIT). The fund plans to invest in a variety of asset categories, including health care, senior living, lodging and lifestyle properties.
Through a continuous public offering that will span two years, CNL Properties Trust seeks to raise up to $3 billion. CNL Securities Corp., a member of the Financial Industry Regulatory Authority, will serve as the managing dealer. The U.S. Securities and Exchange Commission declared the registration statement for CNL Properties Trust effective on Monday.
‘‘We see tremendous opportunities in these asset categories, with property prices at attractive levels and these sectors in need of capital,’’ says Thomas Sittema, CEO of Orlando-based CNL Financial Group, the sponsor of the offering.
‘‘CNL Properties Trust will harness the company’s extensive experience in these categories, including our executive team’s knowledge of these industry sectors and relationships with operators and property owners,” adds Sittema.
The four previous REITs sponsored by CNL each focused on a different asset class. The newly launched CNL Properties Trust will combine many of those asset classes in one portfolio.
CNL Hotels & Resorts Inc. was sold in 2006 for $6.6 billion. CNL Retirement Properties Inc. was sold in 2006 for $5.3 billion. Trustreet Properties Inc., which owned restaurant properties, was listed on the New York Stock Exchange and then sold for $3 billion in 2007.
Meanwhile, CNL Lifestyle Properties, which closed to new investors April 9, has assembled a portfolio exceeding $3.3 billion that includes lifestyle properties such as ski resorts, golf courses and marinas, as well as senior living, destination retail and lodging.
‘‘CNL Properties Trust will be broadly diversified, with the ability to invest in a variety of property sectors and different geographic regions,’’ explains Byron Carlock, president and CEO of CNL Properties Trust. ‘‘We believe this strategy will also allow us to identify growth opportunities and attractively priced assets based on market conditions, demographic trends and competitive factors.’’
CNL Financial Group is a private investment management firm providing global real estate and alternative investments. Since its inception in 1973, CNL and its affiliates have formed or acquired companies with more than $25 billion in assets.