• Real Estate Investment Trusts (REITs);
  • international joint ventures (IJVs);
  • real estate investment


This paper examines international joint ventures (IJVs) by Real Estate Investment Trusts (REITs). Numerous papers have been published regarding international investments as a tool for diversification; however, the real estate industry has not experienced such research. Few researchers have studied the impact of IJVs on the real estate industry and, as a result, it is the authors' hope that this paper becomes a stimulus for further research in this field.

The paper highlights recent IJVs within the real estate industry, including CBL & Associates Properties, Inc.'s JV with Galileo American REIT; Developers Diversified Realty Corporation's JV with Macquarie Bank of Australia; ProLogis' JV with Macquarie Bank of Australia; and Great White Shark Enterprises' JV with Macquarie Bank of Australia. The authors have focused their efforts on foreign investors acquiring US-based properties. The IJVs examined in this study appeared to be motivated by the foreign investors' desire to invest in US property. In this regard, foreign investors perceive US investments to be associated with less political and economic risk.

Several characteristics emerge from the IJVs studied; specifically, IJVs present unique opportunities for global expansion for US firms otherwise prohibited by foreign governments. Further, IJVs allow firms to obtain additional capital resources. In most cases, IJVs are time consuming and messy to design. IJVs are unstable arrangements with, more than likely, one firm seeking to dissolve the arrangement in no more than five years. IJVs generally follow a very structured plan that includes opportunity assessment, evaluation, design and implementation. Copyright © 2005 Henry Stewart Publications