Trouble in Property Syndicates (TPGI, AVI)

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We have two deals which have been called off in the land of mixed use properties as a secondary by Thomas Properties Group, Inc. (NASDAQ: TPGI) and one was the IPO which was supposed to price from Aviv REIT Inc. (NYSE: AVI).

Thomas Properties Group, Inc. (NASDAQ: TPGI) announced last night that that it has postponed its secondary offering of 22 million shares of common stock.  The reason, “due to unfavorable market conditions.”… management said that it does not consider the current market price of the common stock to be reflective of its inherent value.

Aviv REIT Inc. was supposed to be on the IPO deck.  The REIT, real estate investment trust, focuses on healthcare properties.  The IPO was on deck to price last night or this morning as the company and shareholders planned to sell 16.6 million shares in an indicated price range of $17 to $19 per share.  We had heard only mixed information, and no date nor new effort terms have been indicated.

If you have been tracking how this 2009 IPO market went from Winola to something far worse, this may not be a surprise.  Also worth noting is that of the deals we track for 2009 we have more that are busted than those which are higher.

JON C. OGG