Hines REIT Shareholders Approve Liquidation Plan
Shareholders of Hines Real Estate Investment Trust, Inc., a publicly registered non-traded real estate investment trust, approved the liquidation and dissolution of the company, according to a filing with the Securities and Exchange Commission. The REIT’s board of directors unanimously approved the plan at the end of June.
The liquidation plan includes Hines REIT entering into a definitive agreement to sell seven West Coast office assets in a cash transaction for approximately $1.2 billion to an affiliate of Blackstone Real Estate Partners VIII. The company previously noted that the plan takes advantage of the current strong demand for high-quality assets by institutional buyers.
Hines REIT estimates that the net proceeds of approximately $6.35 to $6.65 per share of common stock will be distributed to shareholders on or before December 31st. The company previously distributed $1.01 per share from July 2011 through April 2013 which was designated as partial return of invested capital.
The transaction with Blackstone is structured as an asset purchase of approximately 3 million square feet of office properties and includes Howard Hughes Center in Los Angeles, CA; Daytona Buildings in Redmond, WA; Laguna Buildings in Redmond, WA; 5th and Bell in Seattle, WA; 2100 Powell in Emeryville, CA; 2851 Junction Avenue in San Jose, CA; and 1900 and 2000 Alameda in San Mateo, CA.
The company has already sold the JP Morgan Chase Tower in Dallas; 3400 Data Drive in Rancho Cordova, California; and a 7-property grocery anchored portfolio for a combined $797.1 million.
Shareholders also voted to re-elect five members of the board, and ratified the appointment of Deloitte & Touche as the REIT’s independent registered accounting firm.
Hines REIT, which invests in commercial real estate with a focus on office properties, went effective in June 2004 and raised $2.3 billion in investor equity prior to closing its offering. Shares were originally priced between $10.00 and $10.40 each.
