Hines REIT To Dissolve; In $1.2B Blackstone Deal
HOUSTON—In separate transactions, the REIT has entered agreements over the past few weeks to sell seven West Coast office properties, eight shopping centers and office towers in Chicago and Dallas.
Hines Real Estate Investment Trust Inc. said Thursday its board had unanimously approved a plan to dissolve the company and liquidate its assets. Pursuant to this plan, which is subject to shareholder approval, Hines REIT has agreed to sell seven West Coast office assets to an affiliate of Blackstone Real Estate Partners VIII for $1.162 billion. It also has three other office and retail sales under contract for a total of $823 million.
“When we first launched Hines REIT in 2003, it was structured as a perpetual life vehicle, much like many institutional funds,” says Sherri Schugart, president and CEO of Hines REIT, which is one of three nontraded REITs sponsored by Hines. “Impacts from the great recession caused us to close the fund to new investors in 2009, so we began considering other options that could provide the best opportunities for enhancing stockholder value through the following economic recovery.”