Hines Global REIT II Increases Net Asset Value
The board of Hines Global REIT II, a publicly registered non-traded real estate investment trust, approved a new estimated net asset value of its common stock of $9.65 per share, as of December 31, 2016. The new valuation is a 6.9 percent increase from the previous NAV of $9.03 per share.
The valuation is based on the estimated market value of the REIT’s assets, less the estimated market value of its liabilities, divided by the total shares outstanding.
The Hines Global REIT II board also approved new primary offering prices of its common stock that will take effect on March 9, 2017. Class A shares are now priced at $10.64 per share, and class T shares are priced at $10.06 each.
The company utilized the valuation guidelines established by the Investment Program Association and hired Cushman and Wakefield to appraise its real estate properties and Jones Lang LaSalle to value its debt obligations. Additionally, the REIT engaged Altus Group U.S. Inc. to review the appraisals provided by Cushman and to assess the reasonableness of the new estimated NAV per share – which it concluded was reasonable.
Hines Global REIT II, sponsored by global real estate firm Hines, commenced operations in August 2014 and has raised approximately $214 million in investor equity as of the third quarter of 2016, according to Summit Investment Research. The company invests in commercial real estate properties located in the United States and internationally, and owns a portfolio of six properties with a total acquisition cost of approximately $583.6 million.
