CNL Launches REIT to Target Healthcare and Senior Living, Lifestyle, Lodging and Specialty Properties
CNL Properties Trust to Focus on Property Types in Which CNL Has Extensive Experience
(ORLANDO, Fla.) June 28, 2011 – CNL Financial Group (CNL) has launched CNL Properties Trust, Inc., a new fund that intends to qualify as a real estate investment trust (REIT) and invest in multiple asset classes, including senior living and health care, lifestyle, lodging and specialty properties. The investment objectives will aim to generate income, as well as the potential for future growth, for shareholders.
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 Monday.
“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.”
About CNL Properties Trust, Inc.
CNL Properties Trust, Inc. is an investment offering that will seek to acquire properties in the senior living and health care, lifestyle, lodging and specialty property asset classes. The company intends to qualify as a real estate investment trust. CNL Financial Group is the sponsor of CNL Properties Trust. For more information, visit www.CNLPropertiesTrust.com
About CNL Financial Group
CNL Financial Group (CNL) is a leading private investment management firm providing global real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $25 billion in assets. CNL is headquartered in Orlando, Florida.
This press release may contain forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, including, among others, statements regarding CNL Properties Trust’s ability to acquire assets at attractive prices, diversification of asset classes, future financial position, and business strategy are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of the CNL Properties Trust’s management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the company’s ability to control or predict. Such factors include, but are not limited to, the company’s success in implementing its financial and operational initiatives, competition in the company’s markets, the company’s ability to raise equity and obtain financing for transactions, the company’s ability to identify investments, the impact of tighter credit markets, changes in national, regional and local economic, political or business conditions, the company’s ability to qualify as a real estate investment trust. Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company’s SEC reports, accessible on the SEC’s website at www.sec.gov and the company’s website at www.CNLPropertiesTrust.com.
Management believes these forward-looking statements are reasonable; however, reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to CNL Properties Trust or persons acting on its behalf are qualified in their entirety by these cautionary statements.
There can be no assurance that CNL Properties Trust will experience results similar to those of past CNL offerings. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor the sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The offering of these securities will be made only by means of a prospectus available to download at www.CNLPropertiesTrust.com or from participating broker-dealers.