October 10, 2013 Comments (0) Blog, Securities Fraud

Columbia Property Trust Begins Trading on NYSE

(Last Updated On: July 17, 2015)

Did you invest in Wells REIT II, the now public traded REIT known as Columbia Property Trust? If so, The White Law Group may be able to assist you in the recovery of your investment losses.

According to Columbia Property Trust website, Columbia Property Trust, formally known as Wells REIT II, commenced a modified “Dutch Auction” offer to purchase up to $300 million in common stocks on the New Your Stock Exchange under the ticker symbol CXP. Unlike a traditional auction where the price increases as bidders compete, in a dutch action the price is set high and is lowered until it gets a bid, so long as the price is above the reserve price. The maximum price for the REIT was set at $25.00 with a reserve price of $22.00 per share. Currently, the REIT consists of 82 buildings located throughout the US with a portfolio value of more than $5 billion.

According to the New York Stock Exchange the opening bid was $22.75. While the public listing will provide investors liquidity, selling their shares at the current price will result in significant losses. Prior to the public offering, the REIT issued a 4-for-1 reverse stock split that valued the stock at $29.32 (here to read more). Unfortunately for investors, the public offering has not provided them the opportunity to get back what they invested.

Some broker dealers pushed the sales of non-traded REITs on investors in light of the 7% commissions they would earn. In order to facilitate sales, many broker-dealers over looked suitability requirements. It is a broker dealers duty to make investment recommendations that are in line with a clients age, investment objectives, liquidity needs, and risk tolerance to name a few requirements. In addition, some broker-dealer may even have portrayed REITs as “safe” and failed to adequately disclose the risks associated with the investment. Broker dealers that fail to perform their fiduciary duty to clients can be responsible for investment losses.

If you invested in Columbia Property Trust (f/k/a Wells REIT II) and would like to discuss your potential to recover your investment losses, please call the securities attorneys at The White Law Group at (312)238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

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