August 25, 2017 Comments (0) Blog, Current Investigations

Hines Global REIT II Suspends Share Redemption Program

Hines Global REIT II
(Last Updated On: August 28, 2017)

Tender Offer is Approved by Hines Global REIT II Board of Directors

Have you suffered investment losses in Hines Global REIT II? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

On August 18, 2017, Hines Global REIT II, Inc. announced that its board of directors anticipates approving a tender offer on its Class A, Class T, and Class I shares on or around October 3, 2017.  The tender offer price is anticipated to equal the then most current NAV per share for each respective share class.

Due to the anticipated tender offer, the Board announced the immediate suspension of the share redemption programs applicable to the Class A, Class T, and Class I shares.  The Board anticipates reinstating the respective share redemption programs following the anticipated tender offer.

Investigation of Hines Global REIT II

The White Law Group is investigating potential claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like Hines Global REIT II. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

In addition to the high risks, non-traded REITs, like Hines Global REIT II often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

Recovery of Investment Losses

If you suffered losses investing in Hines Global REIT II and would like a free consultation with a securities attorney, please call The White Law Group at (888) 637-5510

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