Ares Real Estate Income Trust Securities Investigation
The White Law Group is investigating potential securities claims involving Ares Real Estate Income Trust (formerly known as Black Creek Diversified Property Fund).
Black Creek Diversified Property Fund Inc., a publicly registered NAV-based perpetual life REIT managed by Ares Management Corporation (NYSE: ARES), has changed its name to Ares Real Estate Income Trust and amended its share redemption program (SRP), according to filings with the SEC.
The amended SRP allows the board to modify or suspend the program if it’s in the “best interest of the REIT and its stockholders.” The company notes that this would include if a redemption request would place an undue burden on liquidity, adversely affect operations, or risk having an adverse impact that would outweigh the benefit of the redemption offer.
Further, the REIT may suspend the share redemption program due to regulatory changes, changes in law, or if it becomes aware of undisclosed material information that should be publicly disclosed before shares are redeemed. If the SRP is suspended, the board will be required to consider at least quarterly whether to continue the suspension.
The board cannot terminate the share redemption program unless the REIT’s shares were to list on a national securities exchange or where otherwise required by law.
Potential Lawsuits to Recovery Financial Losses
The White Law Group has represented numerous investors in claims against their brokerage firms for improper recommendations of non-traded REITs.
Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, are considerably more complex and involve a high degree of risk. Unfortunately, many investors were not made adequately aware of the risks and liquidity problems associated with REITs.
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.
Firms that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
If you are concerned about your investment in Ares Real Estate Income Trust (fka Black Creek Diversified Property Fund) at the recommendation of your broker 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 Seattle, Washington. For more information on the firm, please visit the website at www.whitesecuritieslaw.com.
To learn more about the firm’s investigation, please see: Black Creek Diversified Property Fund- Secondary Market Offer