CNL Launches New $3 Billion REIT to Target Healthcare, Senior Living, Lifestyle and Lodging Properties

» Featured Columnists | By Michael Gerrity | July 1, 2011 8:30 AM ET

(ORLANDO, FL) -- CNL Financial Group (CNL) announced this week the launch of CNL Properties Trust, Inc., a new fund that intends to qualify as a real estate investment trust (REIT) and invest in multiple asset classes.

The company intends to raise up to $3 billion in capital through a best-efforts, continuous public offering over two years, with CNL Securities Corp., member FINRA/SIPC, serving as the managing dealer. The registration statement for CNL Properties Trust was declared effective by the U.S. Securities and Exchange Commission (SEC) Monday.

CNL says the new REIT's investment objectives will aim to generate income, as well as the potential for future growth for their shareholders.

"We see tremendous opportunities in these asset categories, with property prices at attractive levels and these sectors in need of capital,'' said Thomas K. Sittema, CEO of 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."

CNL's four previous sponsored REITs each focused on a different asset class. 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. 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, attractions, golf courses and marinas, as well as senior living, destination retail and experiential lodging.

"CNL Properties Trust will be broadly diversified, with the ability to invest in a variety of property sectors and different geographic regions,'' said Byron Carlock, president and CEO of CNL Properties Trust. "We believe this broad sector strategy will also allow us to identify growth opportunities and attractively priced assets based on market conditions, demographic trends and competitive factors."