Hines Global REIT Losses – Update on May 16, 2019
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Are you concerned about Hines Global REIT losses? If so, the securities attorneys at 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.
According to SEC filings last month, the Board has authorized Hines Global REIT to declare a liquidating distribution on the Company’s common stock, in an amount per share equal to $0.0541667, to the Company’s stockholders of record at the close of business on December 31, 2018.
These liquidating distributions were to be paid in cash on January 2, 2019.
According to the company, “In addition, all liquidating distributions will be designated by the Company as a return of a portion of the stockholders’ invested capital and, as such, will reduce the stockholders’ remaining investment in the Company.”
According to the filings, “the Company cannot determine at this time when, or potentially whether, it will be able to make additional liquidating distributions to its stockholders or the amount of any such distributions, other than as described below.”
Changes Related to the Plan of Liquidation
End of Monthly Distributions:
The Company says that “Due to the fact that the Company has already sold a significant number of assets and the Company’s expectation that it will sell the remaining assets in the time frame anticipated under the Plan, the Company has determined to stop paying monthly distributions after December 2018.”
Suspend Share Redemption Program (“SRP”):
The Board has determined to suspend the SRP, effective on February 2, 2019, except for the redemption requests related to the death or disability of the shareholder.
According to a recent letter to investors, Mackenzie Realty Capital has extended a tender offer to purchase shares of Hines Global REIT for $6.25/share. According to Mackenzie, “There can be no guarantee, however, that the liquidation will be completed in a timely manner or that investors will receive a higher amount than the $6.25 we are willing to pay today.”
Secondary Sales Price May 16, 2019
According to Central Trade & Transfer, a secondary market for private placements, shares of Hines Global REIT were recently listed for sale for just $5.50/share. The original offering price was $10/share.
The White Law Group continues to investigate potential claims involving Hines Global REIT losses and the liability that brokerage firms may have for improperly recommending the high-risk non-traded REIT to investors.
Non-traded REITS, like Hines Global REIT, are considerably more complex than traditional investments and usually involve a high degree of risk. Unfortunately many investors were unaware of the risks and liquidity problems associated with non-traded REITs, when they were sold the investments.
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. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
If a broker dealer fails to adequately disclose risks or make unsuitable investment recommendations, it can be held liable for investment losses.
If you have suffered from Hines Global REIT losses, the securities attorneys at The White Law Group may be able to help you. Please call The White Law Group at 1-888-637-5510 for a free consultation with an experienced securities attorney.
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.
For more information on The White Law Group and its representation of investors, please visit our website at www.whitesecuritieslaw.com