April 11, 2017 Comments (0) Current Investigations

IG Holdings Cancels Highlands REIT Tender Offer

Highlands REIT
(Last Updated On: April 11, 2017)

Recovery of Investment Losses in Highlands REIT

Are you concerned about your losses investing in Highlands REIT? If so, The White Law Group may be able to help you by filing a FINRA arbitration claim against the brokerage firm that sold you the investment.

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 spun-off from InvenTrust Properties Corp. (formerly Inland American Real Estate Trust) in April 2016.

IG Holdings Inc. and its affiliates have canceled their offer to purchase up to 44.1 million shares of Highlands REIT common stock for $0.17 per share. The offer was originally scheduled to expire on April 24th.

According to a filing with the Securities and Exchange Commission, “certain conditions” were not met and no shares were tendered in the offer.

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. 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.

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 White Law Group has handled a number of claims involving non-traded real estate investment trusts (REITs) like Highlands REIT.

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.

Recovery of Investment Losses

If you invested in Highlands REIT or another non-traded REIT and would like to discuss your litigation options with a securities attorney, please call The White Law Group at 1-888-637-5510 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 White Law Group and its investigations, visit www.whitesecuritieslaw.com.