Morimor assists Green Tower in REIT registration and IPO

Morgan & Morgan has assisted Green Tower Properties Inc. and its shareholders in the registration and conversion as a Real Estate Investment Trust (REIT) with the Superintendencia del Mercado de Valores de Panamá (SMV), including the registration of its Class B Shares with the SMV and the Bolsa Latinoamericana de Valores (LATINEX).

The REIT was authorised by the SMV to publicly offer up to 3,000,00 of its Class B Shares. Such registration and listing allowed Green Tower to conduct an initial public offering (IPO) of its Class B Shares, of which a total of 243,823 shares were successfully placed in the primary market through LATINEX for a gross amount of over US$7,000,000.

Thanks to the IPO, Green Tower will be able to make a repayment of US$7,000,000 in debt repayments on the Series A real estate bonds, improving its cash flow and reducing its level of leverage. In addition, the registration and listing of its Class B Shares will also allow Green Tower’s pre-existing shareholders to monetise their initial investment in Green Tower by selling those Class B Shares in the secondary market through LATINEX.

Green Tower owns 95% of the MMG Tower building, located in Costa del Este, in the corregimiento of Juan Diaz, Panama City, Republic of Panama, on a site of approximately 4,395.56 square metres.

MMG Bank Corporation acted as arranger, payment, registry and transfer agent, custodian and placement agent for the REIT; while MMG Asset Management acted as investment manager.

Morimor’s team included partners Francisco Arias G. (pictured left), Ricardo Arias (pictured centre) and Ana Carolina Castillo (pictured right), along with international associate Miguel Arias M.