No IPO For Legacy Healthcare Properties Trust
October 19, 2010
Unfortunately, for the second time in three months, it looks as if the IPO for Legacy Healthcare Properties Trust will...
not get priced. Even with the warrants that gave investors downside protection in case the share price dropped in the first 30 days after pricing, investors were not biting despite a mostly bullish market in the past two weeks. While there are plenty of other health care REITs that will be investing in the seniors housing and care sector, buyers and sellers were looking forward to this management team entering the market again. Although we have not been able to speak with anyone yet, we assume that Legacy may try to get off the ground with a few smaller acquisitions and then, perhaps, try to go public again. However, it has now tried three times (several months ago was the first attempt with a different underwriter), and it will probably take a much cheaper valuation to attract investors to take yet another look after three previous looks. Today is a very different market from the one in 2006 when management sold their CNL Retirement to HCP, Inc. They are now finding out just how different.