Dividend Capital DPF Renamed Black Creek Diversified Property Fund, Lowers Fees
September 6, 2017 | James Sprow | Blue Vault
Black Creek Diversified Property Fund Inc., a daily NAV REIT formerly known as Dividend Capital Diversified Property Fund, is making important changes to the company’s overall structure after receiving approval from shareholders to amend the charter and restructure the company’s share classes.
Besides changing its name to Black Creek Diversified Property Fund as of September 1, the company is capping and lowering certain underwriting compensation paid by shareholders, lowering the advisor’s asset management fee and eliminating the disposition fee, changing 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 on September 1 which was declared effective by the SEC on September 5, and 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.
According to the Post Effective Amendment filed September 1:
Class T shares (formerly Class A shares) will include a 3 percent selling commission, a 0.50 percent dealer manager fee, and ongoing fees distribution fees of 0.85 percent.
Class D shares (formerly Class W shares) are for fee-based accounts and have no selling commission or dealer manager fees, but include an ongoing distribution 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 selling commission, no dealer manager fee, and ongoing distribution fees of 0.85 percent.
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 estimated fair value of approximately $2.3 billion as of June 30, 2017. The properties were located in 19 geographic markets in the United States, aggregating approximately 8.3 million net rentable square feet.
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