Investments glossary

What Is an Opco?

Opco is the abbreviation for operating company, typically used when describing the primary operating company involved in an opco/propco deal. In some instances, the operating company spins off a subsidiary as a real estate investment trust (REIT) to gain tax advantages. The property company (propco) maintains ownership of all real estate and related debt, offering the opco advantage related to credit rating and financing issues.

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