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Phillips Edison Grocery Center REIT III Suspends Public Offering

June 14, 2019

Phillips Edison Grocery Center REIT III Suspends Public Offering

June 14, 2019 | James Sprow | Blue Vault

In a letter to broker-dealers who are selling group members of the Phillips Edison Grocery Center REIT III, Inc., Griffin Capital Securities CEO Mark Goldberg announced that the board of directors of the nontraded REIT filed a supplement to the REIT’s prospectus, suspending the public offering pending a review of strategic alternatives.

Goldberg’s letter stated:

“You will notice in the supplement that the June 14, 2019 suspension date is a "hard close," meaning that investor subscriptions in process must be received by DST in full and good working order, together with investor funds, by close of business on June 14 in order to be accepted. Please note that the Board also announced, effective June 14, a suspension of the Distribution Reinvestment Plan and Share Repurchase Program. As a result, all future distributions will be received in cash, and checks will be sent to the address/custodian of record listed on the account unless indicated otherwise.”

A filing with the SEC on May 9, 2019, stated that the REIT’s public offering had raised approximately $0.7 million and $1.8 million in gross offering proceeds from the issuance of Class I and Class T shares, respectively, inclusive of the DRIP, as of March 31, 2019. In a private placement that ended in the first quarter of 2018, the REIT raised $57.7 million from the issuance of 5.9 million Class A shares, inclusive of the DRIP.

As of March 31, 2019, the REIT owned three properties with a total of 251,000 square feet that were 95.1% leased. The REIT also had entered into a joint venture with Northwestern Mutual, contributing three grocery-anchored shopping centers in exchange for $41.3 million in cash and a 10% ownership interest in the joint venture.

Sources: Griffin Capital Securities, LLC and SEC

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