Griffin Capital Essential Asset REIT II Suspends Offering, Considers Strategic Alternatives

August 17, 2018 | James Sprow | Blue Vault

In a filing with the SEC on August 17, Griffin Capital Essential Asset REIT II announced that the Board of Directors had formed a Special Committee of its independent directors to conduct a review of a potential strategic alternative that could, among other things, help scale the REIT’s portfolio and potentially enhance stockholder value. The Special Committee has engaged SunTrust Robinson Humphrey, Inc. to act as a financial advisor to the Special Committee in the strategic alternative review process.

In connection with this strategic alternative review process, on August 16, 2018, the Board approved the temporary suspension of the primary portion of the REIT’s follow-on offering, effective August 17, 2018. The Board believes that it would be in the best interest of the company and its stockholders to temporarily suspend the offering to allow the Special Committee to evaluate this potential strategic alternative and, if appropriate and at the appropriate time, recommence its follow-on offering in the retail marketplace. The REIT will accept subscription agreements only if they are signed and dated on or before the close of business on August 17, 2018. The accounts must be fully funded and in good order no later than the close of business on August 31, 2018, for non-custodial held account investments and September 21, 2018, for custodial held account investments. At this time, the REIT intends to continue to offer and sell shares of its common stock in the offering pursuant to its distribution reinvestment plan, and continue to repurchase shares pursuant to its share redemption program.

Griffin Capital Essential Asset REIT II, Inc. is a publicly registered, non-traded REIT focused on acquiring a portfolio consisting primarily of single tenant business essential properties throughout the United States, diversified by corporate credit, physical geography, product type, and lease duration. As of June 30, 2018, the REIT has acquired 35 office and industrial buildings totaling approximately 7.3 million rentable square feet and asset acquisition value of approximately $1.1 billion. The portfolio was 100% leased and occupied on June 30, 2018.

As of June 30, 2018, the REIT was offering common shares in four different share classes, Classes D, I, S and T, with prices per share of $9.59, $9.60, $9.60 and $9.61, respectively. The distribution yields in Q1 2018 were 5.49%, 5.73%, 4.73% and 4.72%, respectively for the four share classes, net of stockholder servicing fees. The reinvestment prices per share as of March 31, 2018, were equal to the offering prices. Blue Vault will be updating the REIT’s data as of June 30, 2018, in the next Nontraded REIT Industry Review. 

Griffin Capital Essential Asset REIT II, Inc. is one of several REITs sponsored or co-sponsored by Griffin Capital Company, LLC. On August 13, Griffin Capital Essential Asset REIT, Inc., another Griffin Capital sponsored nontraded REIT, announced the issuance of $125 million in convertible preferred stock to a Korean-based private investment trust. 

Sources:  SEC, Blue Vault

Learn more about Griffin Capital on the Blue Vault Sponsor Focus page

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