May 5, 2015 Comments (0) Blog, Securities Fraud

KBS Tender Offer

KBS REIT
(Last Updated On: March 22, 2017)

Concerned about Investment Losses in KBS REIT?

Have you suffered investment losses in KBS REIT? If so, the securities attorneys of The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

KBS Real Estate Investment Trust launched its initial public offering in January 2006 for up to 200 million shares of common stock and 80 million DRIP shares. The REIT raised $1.7 billion in its primary offering before its closing in May 2008, and $233.7 million under its dividend reinvestment plan which was terminated in April 2012. The company’s portfolio consists of 188 real estate properties, three real estate loans receivable, and a participation interest in a real estate joint venture.

According to a letter from Mackenzie Realty Capital, a recent tender offer of $1.50 was made to purchase shares of KBS. Unfortunately for many investors, this would be a significant loss on their capital investment.

Compared to traditional investments, such as stocks, bonds and mutual funds, REITs, like KBS, are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and lack of liquidity associated with REITs.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

The high sales commissions associated with REITs such as KBS REIT often provides some broker dealers with enough incentive to overlook suitability requirements. Broker dealers earn extremely high sales commission for selling private placements, sometimes as high as 15%.

Recovery of Investment Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase of KBS, please contact The White Law Group at (888)637-5510 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 Vero Beach, Florida.

For more information on the firm, visit www.WhiteSecuritiesLaw.com.

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