Third Party Tender Offer Price – Corporate Property Associates 18 – Global Inc., may Indicate Losses for Investors
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Corporate Property Associates 18 – Global Inc. (CPA 18 – Global) to investors.
Corporate Property Associates 18 – Global Inc., a publicly registered non-traded real estate investment trust (REIT) managed by W.P. Carey Inc., has raised close to $1.2 billion in gross proceeds from investors, according to filings with the SEC. The REIT’s lease portfolio reportedly includes self-storage properties and student housing projects.
According to a letter to shareholders on October 4, Mackenzie Capital Management LP has launched a third-party tender offer to purchase shares of CPA 18 Global for just $5.05 per share.
The REIT’s share repurchase program is limited and oversubscribed, according to the letter. In August 2020, CPA 18 Global apparently limited the amount of cash available for its share repurchase program and subsequently announced that $20.8 million in repurchases went unfulfilled as of the date of its second quarter 2021 report. Further, the REIT has reduced its distributions for both Class A and C shares approximately 60% from prior levels, beginning during the second quarter of 2020.
The company announced in September that as of June 30,2021 that its estimated net asset value per share was $8.91 per share for Class A common stock and $8.91 per share for Class C common stock.
Shares of the publicly registered non-traded REIT were originally sold for $10.00 each.
Illiquid Investments – Investors may have claims.
Investors looking to sell non-traded REITs, like Corporate Property Associates 18 – Global Inc., often have difficulty finding a buyer, and can suffer significant losses on the sale.
If your financial advisor unsuitably recommended an investment in Corporate Property Associates 18 – Global Inc., you may be able to recover your losses by filing a FINRA arbitration claim against the brokerage firm that recommended the investment.
For a free consultation with one of our securities attorneys, please call the offices of The White Law Group at (888) 637-5510.
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.
FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.