As previously announced, United Development Funding IV (UDF IV) has decided to list its common shares of beneficial interest on the NASDAQ Global Select Market under the symbol “UDF”.
The non-traded REIT, which invests primarily in secured loans for the acquisition and development of land into single-family home lots, and the construction and model of new single-family homes, expects to list June 4, 2014. The company believes that listing will provide liquidity for its current shareholders, as well as funding future growth.
Concurrent with its listing, UDF IV also intends to commence a tender offer on June 4, 2014 to purchase up to $35 million of its common shares. It will buy back shares at a purchase price of $20.50 per share and intends to fund the tender offer with cash on hand, funds available under UDF IV’s existing credit facilities, and/or a new credit facility. The offer will expire on July 2, 2014, unless UDF IV decides to extend it.
“The UDF IV team is proud to announce that we have achieved a significant milestone along our plan to grow and prosper in one of the most integral sectors of the U.S. economy – residential housing. On or about June 4, we intend to list our shares for trading on the NASDAQ exchange,” commented Hollis M. Greenlaw, Chief Executive Officer and Chairman of the Board of Trustees. Greenlaw added, “The Listing is intended to provide UDF IV the most efficient access to capital to increase market share in Texas and expand into the largest homebuilding markets across the country.”
UDF IV is sponsored by United Development Funding (UDF). UDF was founded in 2003 with the intention of providing investors with the opportunity to diversify their portfolios by investing in residential real estate.
As of December 31, 2013 the REIT’s total assets were $570.9 million and it had issued 32,115,232 common shares of beneficial interest in exchange for gross proceeds, including DRIP and Secondary DRIP, of around $642.3 million.