Abstract
We observe 1,146 joint venture (JV) announcements with an average transaction volume of USD 209 million by listed and traded REITs in the period from the first quarter 2003 to the end of the third quarter 2014. Many motives for JV formation have been developed and tested in the financial literature (e.g. synergy-seeking, knowledge-seeking, risk-sharing, M&A alternative, and international expansion). With a focus on REITs, a stream of literature has developed on dispositional JVs (DJVs), mostly arguing for a financing motive. However, we argue operational and financial flexibility, as well as market opportunities to drive JV formations, particularly those of JVs for acquisitions (AJVs), for which only a sparse body of literature exists to date.
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