March 2, 2017 Comments (0) Blog, Current Investigations

Highlands REIT tender offer

Hines REIT
(Last Updated On: March 2, 2017)

Concerned about investment losses in Highlands REIT?

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

Highlands REIT is a non-traded real estate investment trust that oversees an 18-property portfolio of office, industrial, and retail assets, correctional facilities, and unimproved land. Highlands REIT was a spin-off of InvenTrust in April 2016.

Each InvenTrust stockholder received one share of Highlands REIT common stock for every share of InvenTrust common stock. InvenTrust stockholders now own shares in both InvenTrust and Highlands. The number of InvenTrust shares held by stockholders did not change as a result of the distribution of Highlands common stock.

New Tender Offer

Recently, IG Holdings Inc. and its affiliates have offered to purchase up to 44.1 million shares of Highlands REIT common stock for $0.17 per share. The offer, which constitutes approximately 5.10 percent of the outstanding shares, expires on April 24th. If all shares are tendered, IG Holdings will pay a total of $7.5 million.

Earlier this year, the board of Highlands REIT approved an estimated per share net asset value of $0.35 per share, as of December 31, 2016. The IG Holdings tender offer price of $0.17 per share is a 51.4 percent discount to the REIT’s NAV

Highlands had approximately 170,000 holders of record owning a total 864.9 million shares, as of November 2, 2016. IG Holdings and its affiliates currently own 1.9 million shares of Highlands REIT.

If shareholders choose to tender their shares, they will be charged a $100 transfer fee.

IG Holdings is controlled by Ira Gaines, who serves as its sole director and holds all executive officer positions. In 1992, he founded Peachtree Partners, a firm focused on investments in distressed assets.

The trouble with non-traded REITs

The trouble with non-traded REITs, like Highlands REIT, is that they are complex and inherently risky products.

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those 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.

Lack of liquidity is often problematic for many investors.  Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

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

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.