Aviv REIT Inc. (AVI:US), a real estate investment trust that owns skilled-nursing facilities in 29 U.S. states, filed to raise as much as $264 million in an initial public offering.
The company plans to sell 13.2 million shares at $18 to $20 each, according to a filing today (AVI:US) with the U.S. Securities and Exchange Commission. Aviv, based in Chicago, said it plans to use proceeds from the offering to repay debt and for general corporate purposes, including real estate acquisitions.
Aviv owns 258 properties, including $559 million of real estate acquired in the past five years. The skilled-nursing property market is fragmented and “we believe there is a significant consolidation opportunity,” the REIT said in the filing.
Aviv’s tenants are operators of skilled-nursing facilities, which provide care for people recovering from illness or surgery as well as long-term residents who need assistance for daily living. The operators are responsible for paying such property expenses as maintenance and repairs.
David Smith, a spokesman for Aviv REIT, didn’t immediately return a telephone call seeking comment.
The company will have a market capitalization of almost $900 million after the offering, based on the midpoint of the planned pricing range and 47.3 million shares outstanding.
Morgan Stanley, Bank of America Corp. and Goldman Sachs Group Inc. are leading the share sale.
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