Tender Offer for Hines Global REIT Shares at $6.15 Per Share

October 3, 2018 | James Sprow | Blue Vault

On October 2, 2018, MacKenzie Realty Capital, Inc., CMG Partners, LLC, and Coastal Realty Business Trust, collectively offered to purchase up to 13,608,000 shares of Hines Global REIT, Inc. common stock at a purchase price of $6.15 per share. Any dividends paid after November 13, 2018, or such other date to which the offer may be extended, would be assigned by tendering shareholders to the tendering companies. The offer was amended to increase the original tender offer from 2,500,000 shares in the original tender offer filed October 1, 2018. The 13,608,000 shares subject to the offer constitute 5% of the outstanding shares.

According to the offer, the REIT had 60,000 holders of record owning an aggregate of approximately 272,100,000 shares as of December 31, 2017, and August 6, 2018, according to its Annual Report on Form 10-K for the fiscal year ending December 31, 2017, and Quarterly Report on Form 10-Q for the period ended June 30, 2018, respectively. The tendering companies and their affiliates currently beneficially own 0 Shares, or 0.0% of the outstanding shares.

In their offer, the tendering companies state:  “Although there can be no certainty as to the actual present value of the Shares, the REIT estimated that as of April 23, 2018, liquidating distributions made pursuant to the plan of liquidation will total $8.83 to $9.83 per Share. Sales distributions paid after April 23, 2018 through September 2018 total $0.22 per Share, which lowers the value of assets held by the company. It should be noted, however, that the Purchasers have not made an independent appraisal of the Shares or the REIT’s properties and are not qualified to appraise real estate. Furthermore, there can be no assurance as to the timing or amount of any future REIT dividends, and there cannot be any assurance that the REIT’s estimate accurately reflects an approximate value of the Shares or that the actual amounts which may be realized by holders for the Shares may not vary substantially from this estimate.”

On February 26, 2018, the board of directors of the REIT determined a new net asset value per share of common stock of $9.04 as of December 31, 2017. Hines Global REIT has raised approximately $3.1 billion through its public offerings, including the DRIP offering. As of June 30, 2018, the REIT owned interests in 33 real estate investments which contain, in the aggregate, 13.9 million square feet of leasable space.

Source:  SEC

Learn more about Hines on the Blue Vault Sponsor Focus page

Hines Global REIT to Pay Partial Liquidating Distribution

Hines Global REIT Shareholders Approve Liquidation

Hines Real Estate Investment Trust Declares Final Distribution