Posts tagged ‘Columbia Property Trust share price’

Columbia Property Trust Begins Trading on NYSE

Did you invest in Wells REIT II, the now public traded REIT known as Columbia Property Trust? If so, The White Law Group may be able to assist you in the recovery of your investment losses.

According to Columbia Property Trust website, Columbia Property Trust, formally known as Wells REIT II, commenced a modified “Dutch Auction” offer to purchase up to $300 million in common stocks on the New Your Stock Exchange under the ticker symbol CXP. Unlike a traditional auction where the price increases as bidders compete, in a dutch action the price is set high and is lowered until it gets a bid, so long as the price is above the reserve price. The maximum price for the REIT was set at $25.00 with a reserve price of $22.00 per share. Currently, the REIT consists of 82 buildings located throughout the US with a portfolio value of more than $5 billion.

According to the New York Stock Exchange the opening bid was $22.75. While the public listing will provide investors liquidity, selling their shares at the current price will result in significant losses. Prior to the public offering, the REIT issued a 4-for-1 reverse stock split that valued the stock at $29.32 (here to read more). Unfortunately for investors, the public offering has not provided them the opportunity to get back what they invested.

Some broker dealers pushed the sales of non-traded REITs on investors in light of the 7% commissions they would earn. In order to facilitate sales, many broker-dealers over looked suitability requirements. It is a broker dealers duty to make investment recommendations that are in line with a clients age, investment objectives, liquidity needs, and risk tolerance to name a few requirements. In addition, some broker-dealer may even have portrayed REITs as “safe” and failed to adequately disclose the risks associated with the investment. Broker dealers that fail to perform their fiduciary duty to clients can be responsible for investment losses.

If you invested in Columbia Property Trust (f/k/a Wells REIT II) and would like to discuss your potential to recover your investment losses, please call the securities attorneys at The White Law Group at (312)238-9650 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 Boca Raton, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

Columbia Property Trust Prepares for Initial Public Offering

Columbia Property Trust Inc. (formerly Wells REIT II) recently announced major changes as the REIT prepares for a potential listing on a national securities exchange.

A letter to shareholders announced that as of July 2013, the REIT’s share redemption program is terminated and distribution reinvestment plan is suspended. In preparation to take the REIT public, the letter cited “current market conditions” and “legal requirements” as the reason for the suspension of the programs.

The termination of the share redemption program may be particularly problematic for some investors. According to the letter, the termination applies to both ordinary and special redemption’s, meaning that even if the shareholders dies, becomes disabled, or needs to redeem their shares to qualify for federal assistance in a long-term care facility, the REIT will not buy back their shares.

According to a Frequently Asked Questions document available on the Columbia Property Trust website, the REIT has until October 2015 to list stock on a public securities exchange. In the event the REIT fails to go public, the REIT will seek shareholders’ approval to extend the listing deadline or begin liquidating investments and distributing the proceeds to investors.

In addition, Columbia Property Trust recent Form 8-K filed with the SEC announced the approval of a 4-for-1 reverse stock split. Shareholders will receive one share of stock valued at $29.32 for every share of stock they currently own. While the REIT’s intent is to increase the estimated net asset per share value so that it is more in-line with the value of publicly traded REITs, this indicates that prior to the split the estimated value of the REIT is $7.33 per share. Certainly, this may come as troubling news to many investors who initially purchased the REIT at $10.00 per share.

Furthermore, fractional shares will not be issued. Rather the REIT has elected to pay cash for any fractional shares. To put it another way, if you own 125 shares, after the 4-for-1 reverse stock split, you will be issued 31 shares of stock (125/4=31.25) and cash payment of $7.33 for your fractional share of 0.25.

Unfortunately for many investors, they should never have been sold the REIT in the first place. REITs are incredible complex and high risk investments that are inherently illiquid and inappropriate for most investors, especially retired investors. Brokers that sell REITs have a fiduciary duty to make sure the investment is suitable for every individual client and must take into account the clients age, risk tolerance, financial needs, and investment objections to name a few of the suitability requirements enforced by the Financial Industry Regulatory Authority (FINRA).

Brokers that overlooked suitability requirements or portrayed the REIT as “safe,” be liable for investment losses through FINRA dispute resolution claim. On behalf of investors, The White Law Group is investigating claims that some brokers violated securities law and FINRA regulations when selling Columbia Property Trust.

If you invested in Columbia Property Trust (Wells REIT II) and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (312)238-9650 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 Boca Raton, Florida. For more information on the firm, visit http://www.whitesecuritieslaw.com.

Recovery of Columbia Property Trust Losses

Have you suffered losses in Columbia Property Trust?  If so, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA arbitration claim.

According to its website, Columbia Property Trust is an investment management company with a $5+ billion portfolio comprising of more than 60 Class-A office properties in key markets nationwide.  Columbia Property Trust was founded in Norcross, Georgia, a suburb of Atlanta, under the former name Wells REIT II, Inc.

Based on reports, it appears that the share price of Columbia Property Trust (Wells REIT II) has declined by 30% or more.  The White Law Group is investigating the liability that brokerage firms may have for selling Columbia Property Trust.

Brokerage firms have a fiduciary duty to perform adequate due diligence on any investment before offering it for sale to their clients.  Additionally, broker-dealers must evaluate the investor’s age, investment objectives, investment experience, and net worth in order to determine whether a specific investment recommendation is suitable.  Given the performance of Columbia Property Trust and how non-traded REITs are often sold as low risk, income producing investments, it appears that the firms that sold this investment may be liable for the resulting loss.

If you invested in Columbia Property Trust (Wells REIT II) and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 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 Boca Raton, Florida.  For more information on the firm, visit http://www.whitesecuritieslaw.com.