CommonWealth may sell Select Income stake
NEWTON, Mass. (AP) — CommonWealth REIT said Monday that it's considering selling all or part of its 56 percent stake in Select Income REIT.
CommonWealth, based in Newton, Mass., is a real estate investment trust with holdings across the U.S. Select Income was the company's subsidiary until March 2012 when it was spun off. CommonWealth still owns 22 million shares of Select Income's common stock.
Select Income, a REIT focused on single-tenant properties, said that at CommonWealth's request, it filed with the Securities and Exchange Commission to allow its former parent to sell all or part of its shares through a public offering.
CommonWealth said it has yet to make a decision on whether it will sell all or part of its shares. If it does decide to sell shares, CommonWealth said it currently plans to use the net proceeds to repay debt and eventually make new office building investments.
Commonwealth shares fell 33 cents to $22.67 in afternoon trading. Select Income fell $1.12, or 4.2 percent, to $25.54.