(Adds analyst comment, listing details, stockholders)
By Neha Dimri
Aug 29 Real estate owner Store Capital Corp,
backed by private equity firm Oaktree Capital Management LLC,
filed with U.S. regulators on Friday for an initial public
offering of common stock.
Scottsdale, Arizona-based Store Capital buys real estate
from large tenants, such as chain restaurants, supermarkets and
health clubs, and leases the properties back to the tenants.
Store, which stands for Single Tenant Operational Real
Estate, had a portfolio of more than 700 properties across 43
U.S. states as of June 30.
"Demand for high-yield products is very strong and the (real
estate) sector is more tied to the credit cycle and housing
market, creating appeal for company," said Joseph Schuster, the
founder of IPO research firm IPOX Schuster LLC, adding that the
offering was likely to attract strong investor interest.
Reuters reported in July that Store Capital had hired banks
to explore a potential offering that could raise $300 million to
$500 million and value the company at about $2 billion
Private equity firm Oaktree Capital, a Los Angeles-based
private equity firm, helped launch Store Capital in 2011 with an
initial investment of $400 million.
The company said it intended to structure itself as a real
estate investment trust (REIT) after the offering.
Companies with significant real estate assets seek a REIT
structure to help lower the tax burden on their rental income.
Shareholders also stand to gain as REITs are required to
distribute at least 90 percent of their profits as dividends.
Store Capital intends to list on the New York Stock Exchange
under the symbol "STRE".
The company plans to use the proceeds from the offering for
investments and debt repayment.
Store Capital listed Goldman Sachs, Credit Suisse and Morgan
Stanley among the underwriters to the IPO. (1.usa.gov/1lAi0za)
Earlier this week, Paramount Group Inc also filed for an
IPO, in what could be the second-largest listing by a real
estate company in the United States after Hilton Worldwide
Holdings Inc's IPO last year.
Store Capital filed to raise $500 million from the offering,
but did not reveal how many shares it planned to sell or their
The amount of money a company says it plans to raise in its
first IPO filings is used to calculate registration fees. The
final size of the IPO could be different.
(Editing by Simon Jennings)