Dividend Capital Restructures with New Name and Lower Fees
Black Creek Diversified Property Fund Inc., a daily NAV REIT formerly known as Dividend Capital Diversified Property Fund (NASDAQ: ZDPFAX; ZDPFEX; ZDPFIX; ZDPFWX), is implementing a number of changes to the company’s overall structure after receiving approval from shareholders to amend the charter and restructure the company’s share classes.
In addition to changing its name to Black Creek Diversified Property Fund, the company is capping and lowering certain underwriting compensation paid by shareholders, lowering the advisor’s asset management fee and eliminating the disposition fee, migrating from a daily to monthly net asset valuation, revising the compensation paid to dealer manager Black Creek Capital Markets LLC (formerly Dividend Capital Securities LLC), and combining the share redemption program for each share class into a single program for all stockholders.
The company filed a new registration statement with the SEC, and once approved, it will begin offering Class T, Class D and a new version of Class I shares of common stock to replace its Class A, Class W and Class I shares. The company created a new class called Class S shares and formally designated its outstanding unclassified shares of common stock as Class E shares, which will continue to be free from class-specific expenses.
Class T shares (Class A shares) will include a 3 percent selling commission, a 0.50 percent dealer manager fee, and ongoing fees (distribution, dealer manager, or stockholder servicing fee) of 0.85 percent.
Class D shares (Class W shares) are for fee-based accounts and have no selling commission or dealer manager fees, but include an ongoing fee of 0.25 percent.
Class I shares are for institutional investors and have no selling commission, dealer manager fees, or ongoing fees.
The new Class S shares will include a 3.5 percent include a 3.5 percent selling commission, no dealer manager fee, and ongoing fees of 0.85 percent.
The board of directors appointed Scott Recknor to serve as managing director - head of asset management to oversee the asset management functions of the company’s industrial and office portfolios.
Black Creek Diversified Property Fund, based in Denver, Colorado, invests in a portfolio of commercial real estate assets. The company’s original offering went effective in January 2006 and has raised more than $2.4 billion in investor equity through multiple follow-on offerings. The company owned 51 properties with an investment cost of approximately $2.5 billion, as of June 30, 2017.