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Franklin Resources' subsidiary will consolidate REITs worth $115M
A subsidiary of San Mateo-based financial services giant Franklin Resources Inc. plans to merge three privately held real estate investment trusts with assets totaling $115 million into a single, publicly traded REIT.
Shareholders who originally invested more than $120 million are destined to lose money in the roll up, at least in the short term. Pending shareholder approval Oct. 19, the REIT, to be called Franklin Realty Trust Inc., is expected to have a market capitalization of less than $100 million, according to the prospectus.
But officials at Franklin Properties Inc., which sponsored and manages the trusts, said the move is designed to give shareholders the most for their money over the long term.
The merger would combine three REITs -- the Franklin Real Estate Income Fund, Franklin Select Real Estate Income Fund and Franklin Advantage Real Estate Income Fund, which were founded in 1988, 1989 and 1990 respectively. The move was …