September 20, 2016 Comments (0) Current Investigations

Highlands REIT Investigation

(Last Updated On: November 4, 2016)

Have you suffered investment losses in Highlands REIT? If so, the securities attorneys of The White Law Group may be able to help.

Highlands REIT is a “self-advised, non-traded real estate investment trust”, according to their website.

LPSales.com, a secondary market for non-traded investments, offered just $.21 per unit again in September for shares of Highland REIT. Unfortunately for many investors, this bid price would represent a significant loss on their capital investment.

In addition, at the beginning of September, Highlands REIT issues a notice to shareholders with a recommendation to reject a recent unsolicited mini-tender offer from MPF Northstar Fund, LP, MPF Northstar Fund 2, LP, MacKenzie Northstar Fund 3, LP, Coastal Realty Business Trust and MacKenzie Capital Management, LP.

The letter states that the Highlands Board of Directors has reviewed the terms of the offer and unanimously recommends shareholders not to do so.

According to the letter, some of the rationales the Board considers in rejecting the offer are:

  • The Board believes that the offer price is less than the current and potential long-term value of the shares.
    •Although the Board cannot provide any guarantee that Highlands will pay distributions in the future, if you sell, you will lose all rights attendant to the shares that you sell, including the right to receive any future distributions.
    • None of Highlands’ directors, executive officers, subsidiaries or other affiliates intends to tender shares of stock to the Offeror.
    • The Offeror states that it has not made an independent appraisal of the shares or Highlands’ properties, and is not qualified to appraise real estate.
    • The Offeror acknowledges that in establishing the purchase price of $0.10 per share, it is motivated to establish the lowest price which might be acceptable to stockholders consistent with the Offeror’s objectives.
    • The Offeror states that it has applied a discount to the estimated per share value with the intention of making a profit.
    • Stockholders looking to liquidate should note that, according to Highlands’ transfer agent, since the Company’s separation from InvenTrust Properties Corp. on April 28, 2016, sales prices of the shares on the secondary market have ranged from $0.10 to $0.36 per share.

The White Law Group continues to investigate potential claims against the broker dealers that sold high risk investments, like Highlands REIT, onto unsuspecting investors.

Non-Traded REITs are complex products that involve a significant degree of risk and arguably unsuitable for many investors. Brokerage firms that overlooked suitability requirements or failed to disclose the risk when recommending Highlands REIT to clients, may be liable for losses.

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim.

For more information on The White Law Group’s investigation of Highlands REIT, go here.

If you have invested in Highlands REIT or another non-traded REIT and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. To learn more about The White Law Group visit www.whitesecuritieslaw.com.

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