Grubb & Ellis Ellis Venture’s IPO Raises $125 Million

Grubb & Ellis Co., a real estate services company that manages 200 million square feet of commercial space in more than 30 countries, raised $125 million by selling shares in a new venture that plans to buy industrial and office properties.

Grubb & Ellis Realty Advisors Inc., a so-called blank check company because of its speculative nature, sold more than 20.8 million securities, composed of one share of stock and two warrants, at $6 each, a banker involved in the sale said Monday. It had initially planned to sell 16.7 million of the securities.

The Northbrook, Ill.-based company is deviating from almost half a century as a services-only firm by spending money from the initial share sale to buy property. The company said in a regulatory filing that it was looking at “secondary and tertiary” U.S. markets and major U.S. suburbs. Janice McDill, a company spokeswoman, declined to elaborate.

The cash will be placed in a trust and must be used to buy property within 18 months. If not, the venture will be liquidated and investors will get their money back, less transaction fees, according to a Feb. 6 filing with the Securities and Exchange Commission.