Campus Crest Communities, a self-managed REIT focused on high-quality student housing properties, raised $354 million by offering 28.3 million shares at $12.50, roughly 7% below the midpoint of its $12.50 to $14.50 range. Campus Crest Communities will list on the NYSE and is expected to open for trading on Thursday under the symbol CCG. Raymond James, Citi, and Goldman, Sachs & Co. acted as lead managers on the deal.
Campus Crest represents the ninth REIT to complete an IPO in 2010, with the previous eight REIT offerings averaging a total return of -2.4%. Only two of these IPOs, Piedmont Office Realty Trust (PDM; up 30%) and Whitestone REIT (WSR: up 7%) are trading above their respective offer prices. Reflecting the market's ongoing selectivity to REIT new issues, nearly a dozen REITs have postponed or withdrawn their IPO plans so far this year.
