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Workspace Property Trust plans IPO


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Capital Markets View – January 2021

Workspace Property Trust plans IPO

Workspace Property Trust filed for an IPO of an undisclosed number of common shares.

The proposed maximum aggregate offering price, estimated solely for the purpose of calculating the registration fee, is $100.0 million.

The fully integrated real estate investment company focuses mainly on acquiring, owning and operating high-quality office and flex real estate in prime locations within transit-centric, amenity-rich U.S. suburban office submarkets.

The company will funnel the net proceeds to its operating partnership in exchange for common units. Workspace Property Trust LP, in turn, will use the net proceeds to repay outstanding debt under the company's existing loan with KeyBank NA, repay outstanding debt under a senior mortgage loan and three mezzanine loans obtained in relation to the purchase of its second portfolio, and pay about $63.9 million in cash to redeem the mandatorily redeemable preferred equity issued by the operating partnership as part of the second portfolio acquisition.

Any remaining funds will be used for general corporate purposes, including capital expenditures and possible future acquisition opportunities.

Part of the net proceeds will also be used to acquire common units from Safanad Ltd. affiliate Safanad Suburban Office Partnership LP in cash. According to a filing, Safanad Suburban Office injected $106 million in relation to Workspace Property Trust's second portfolio acquisition in exchange for equity interests in the trust's operating partnership; its predecessor general partner, Workspace Property Management; and the general partner of its predecessor general partner.

Workspace Property Trust will seek to qualify as a real estate investment trust for U.S. federal income tax purposes, starting with the 2017 taxable year. It has applied for the listing of its common shares on the NYSE under the WSPT ticker.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Merrill Lynch Pierce Fenner & Smith Inc. are the representatives of the underwriters in the IPO.