Already in 2021, the trend of special purpose acquisition companies (SPACs) has continued so swiftly that it may dwarf the activity that took place in 2020. These “blank check” companies are used to raise money for a variety of companies across many different sectors, including real estate.
Already this year, we’ve seen Simon Property Group (NYSE: SPG) create a SPAC, and a proptech start-up, Latch, was acquired by Tishman Speyer’s SPAC. The newest SPAC with an eye on real estate is BOA Acquisition, which announced its intentions last week with the filing of an S-1. BOA seeks to raise up to $175 million in its initial public offering.
The reason this SPAC may have real estate on its radar is that the chairman of the company is Scott Seligman, chairman of The Seligman Group, a company that specializes in acquisition and management of commercial and residential properties across the United States. The Seligman Group portfolio includes a variety of real estate types, including malls, industrial buildings, offices, and hotels.
The details on BOA
BOA Acquisition is offering shares of Class A stock for $10 per share along with one-half of one redeemable warrant.