For the REIT Exemption to apply, the acquiring person (UPE) or the acquiring entity must be a REIT.
Question
From: Shaffer, Kristin
Sent: Tuesday, October 9, 2018 2:33:17 PM (UTC-05:00) Eastern Time (US & Canada)
To: [Redacted]
Cc: [Redacted]
Subject: RE: REIT Question
For the REIT exemption to apply, the acquiring person (UPE) or the acquiring entity must be a REIT.
Best regards,
Kristin
From: [Redacted]
Sent: Tuesday, October 9, 2018 11:58:52 AM (UTC-05:00) Eastern Time (US & Canada)
To: [Redacted]
Subject: REIT Question
Hello,
I hope you had a nice holiday weekend. I am writing to confirm that the Section 7A(c)(1) ordinary course of business exemption that applies when a REIT buys a REIT, also applies in the following separate situations:
Target = REIT
Acquisition Vehicle = REIT
Buyer REIT and Buyer Non-REIT are co-investors in Holdco. Buyer REIT holds a controlling interest in HoldCo and the HoldCo wholly owns (or holds more than 50% in) the Acquisition Vehicle (REIT) that will acquire the Target REIT.
Target = REIT
Acquisition Vehicle = Not a REIT
Buyer REIT and a Buyer Non-REIT are co-investors in Holdco. Buyer REIT holds a controlling interest in HoldCo and the HoldCo wholly owns (or holds more than 50% in) the Acquisition Vehicle that will acquire the Target REIT.
Please confirm whether the REIT/REIT ordinary course of business exemption is applicable to each of these scenarios.