Aspire Real Estate Investors, an affordable housing REIT targeting Opportunity Zones formed by Avanath Capital, announced terms for its IPO on Friday.
The Irvine, CA-based company plans to raise $300 million by offering 15 million shares at $20. The company plans to raise an additional of $27 million in concurrent private placements to senior management and other investors. At the proposed price, Aspire Real Estate Investors would command a market value of $327 million. The company intends to pay a dividend.
Formed from predecessors Avanath Affordable Housing I and II, this REIT is focused on acquiring existing income producing affordable and workforce multifamily properties. Its initial portfolio will be comprised of nine multifamily projects, six of which are located in Opportunity Zones.
Aspire Real Estate Investors was founded in 2008 and booked $23 million in revenue for the 12 months ended September 30, 2020. It plans to list on the NYSE under the symbol ASPI. Morgan Stanley, B. Riley FBR, Wells Fargo Securities, BMO Capital Markets and KeyBanc Capital Markets are the joint bookrunners on the deal. It is expected to price during the week of November 16, 2020.
