Behringer Harvard Opportunity REIT I Sets Date for Liquidation Vote
Behringer Harvard Opportunity REIT I, a publicly registered non-traded real estate investment trust, is seeking shareholder approval for its plan of liquidation that was approved by the board late last month. Shareholders will vote at the company’s upcoming annual meeting scheduled on January 23, 2017.
The plan of liquidation would allow the REIT to sell its assets, pay its debts and distribute the net proceeds to stockholders. A special committee of independent directors previously hired Robert W. Baird & Co., an investment banking firm, to evaluate strategic alternatives for the company. The REIT also engaged Capright Property Advisors, an independent appraisal firm, to estimate the value of its assets and what stockholders would likely receive if a liquidation took place.
Capright estimates that if the plan is successfully implemented, the net proceeds could range between $1.75 and $2.01 per share. Shares were originally priced at $10.00 each, and the company’s most recent NAV of $3.58 per share was published in October 2014.
Behringer Harvard Opportunity REIT I went effective in September 2005 and closed in December 2007 after raising $559 million in investor equity. The company suspended its distribution in March 2011 and currently oversees a portfolio of five properties with an investment cost of $357 million.
