Hines Global REIT Plans to Sell Campus for $335 Million
October 9, 2018 | James Sprow | Blue Vault
On October 2, 2018, Hines Global REIT, Inc., entered into a contract with Hart Campus Playa Vista LLC, to sell the Campus at Playa Vista. The Campus at Playa Vista is a four-building Class A office complex in Los Angeles, California. It has 348,627 square feet of leasable space.
The contract sales price for the Campus at Playa Vista is expected to be approximately $335.0 million in aggregate, exclusive of transaction costs and closing prorations, of which $10.0 million is contingent on certain leasing conditions to occur on or before November 15, 2019. Hines Global expects the closing of this sale to occur no later than November 2018, subject to a number of closing conditions. The property was purchased in 2013 for $216.6 million. As of June 30, 2018, the property was 99% occupied.
On April 23, 2018, in connection with its review of potential strategic alternatives available to the Company, the Company’s board of directors determined that it is in the best interest of the Company and its stockholders to sell all or substantially all of the Company’s properties and assets and for the Company to liquidate and dissolve pursuant to the Plan of Liquidation. The principal purpose of the Plan of Liquidation is to provide liquidity to the Company’s stockholders by selling the Company’s assets, paying its debts and distributing the net proceeds from liquidation to the Company’s stockholders. On December 29, 2017, the Company declared a special distribution to stockholders of $1.05 per share that was paid in cash to all stockholders of record as of December 30, 2017 in January 2018.
On July 17, 2018, in connection with the stockholder approval of the plan of liquidation and dissolution, the Company’s board of directors approved to suspend indefinitely the Company’s distribution reinvestment plan effective as of August 31, 2018. As a result of the suspension of the Company’s distribution reinvestment plan, any distributions paid after August 31, 2018 will be paid to the Company’s stockholders in cash.
Sources: SEC, S&P Global
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