Carey Watermark Investors 2 Inc. (CWI 2) on Friday announced that it has commenced a capital raise of up to US$1.4 billion to acquire a diversified portfolio of lodging and lodging-related properties.
Carey Lodging Advisors, a subsidiary of W. P. Carey Inc., and CWA2, a subsidiary of Watermark Capital Partners, will manage CWI 2’s overall portfolio.
In its initial offering, CWI 2 will issue up to 140 million shares of its common stock for sale at US$10 per share and up to an additional 60 million shares of its common stock for issuance under its distribution reinvestment plan at US$9.60 per share.
CWI 2 also announced that its board has declared a daily distribution for the first quarter of 2015 of $0.0015277 per share, which equates to an annualized distribution rate of 6% on its initial public offering price of US$10 per share.