The Community Development Trust (CDT), the US’ first and largest private real estate investment trust (REIT), has closed on a USD44.5m private placement offering.
Its fourth capital raise since its inception, this offering by CDT involved the issuance of 5.00 per cent cumulative redeemable preferred shares to nine investors.
The organisation will use these funds to advance its work of preserving and expanding affordable housing nationally through mission-driven investments. A portion of the proceeds will also be used to provide liquidity to investors in CDT’s common stock.
The companies participating in this capital raise included both existing investors and new investors.
Existing investors included: Citicorp USA, HSBC Bank USA, The Prudential Life Insurance Company of America and Wells Fargo Community Investment Holdings.
New investors included: BNY Mellon, Boston Private, Capital One Community Development Corporation, Morgan Stanley and PNC Bank Community Development Corporation.
“We are demonstrating that there is a market for a variety of financial investment alternatives secured by community development assets, where investors can receive adequate returns while supporting vital social goals,” says Joseph Reilly, president and CEO of CDT. “CDT is proud to be receiving investments from these partners and eager to put the funds toward the expansion and preservation of the country’s supply of high-quality, affordable housing.”