SEC Staff Issues No-Action Letter Facilitating Rule 144 Sales of REIT Shares Received in Exchange for Operating Partnership Units
15 March 2016SEC Update
On March 14, the staff of the SEC’s Division of Corporation Finance issued a no-action letter that will enable holders of shares of a publicly traded real estate investment trust (REIT) received in exchange for privately placed units of the REIT’s operating partnership to sell the shares under Rule 144 without having to start a new holding period for them. The staff issued the letter in response to a no-action request jointly submitted by Bank of America, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated and three law firms, including Hogan Lovells. The letter is captioned Bank of America, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated and is available here.