Griffin Capital Essential Asset REIT’s $125 Million Preferred Private Offering with Korean Trust

August 15, 2018

Griffin Capital Essential Asset REIT’s $125 Million Preferred Private Offering with Korean Trust

August 14, 2018 | James Sprow | Blue Vault

Griffin Capital Essential Asset REIT, Inc. (the “REIT”) announced the issuance of $125 million of Series A Cumulative Perpetual Convertible Preferred Stock in a private exempt offering. The closing is the first tranche of a total of $250 million of Perpetual Preferred, the balance of which the REIT anticipates will be issued within sixty days. The holders of the Series A Preferred Shares will receive an initial annual distribution of 6.55 percent and the holder(s), at its option, has the right to convert its shares into common stock of the REIT any time after five years from the issuance thereof. The Series A Preferred Shares were purchased in their entirety by SHBNPP Global Professional Investment Type Private Real Estate Trust No. 13 (H). The lead investor in the trust is NH Investment & Securities. The REIT currently intends to leverage the $125 million of preferred equity to purchase approximately $200 million of additional net-leased real estate assets.

“After several months of relationship building, we could not be more pleased to have completed the first leg of this equity transaction,” said Kevin A. Shields, Chairman and Chief Executive Officer of the REIT. “It was a pleasure to work closely with Hana Financial and the teams at both NH and Shinhan and we hope this is the first in a series of transactions we can accomplish together.”

Griffin Capital’s Chief Investment Officer, and the REIT’s President, Michael J. Escalante, commented, “We are excited to have sourced competitively-priced capital to allow the REIT to continue to grow its asset base, diversify the tenant portfolio and lengthen our average lease duration. This is the second time we have accessed the preferred equity market to facilitate our expansion with capital, and once deployed, will be accretive to the REIT and our shareholders.”

About Griffin Capital Essential Asset REIT
Griffin Capital Essential Asset REIT, Inc. is a publicly-registered non-traded REIT with a portfolio, as of June 30, 2018, of 76 office and industrial properties totaling 20.1 million rentable square feet, located in 20 states, representing total REIT capitalization of approximately $3.2 billion. Griffin Capital Essential Asset REIT, Inc. is one of several REITs sponsored or co-sponsored by Griffin Capital. To learn more about Griffin Capital Essential Asset REIT, please visit: https://www.griffincapital.com/griffin-capital-essential-asset-reit

About Griffin Capital Company, LLC
Founded in 1995, Griffin Capital Company, LLC is a leading alternative investment asset manager with $10.75 billion* in assets under management. Griffin Capital Company currently sponsors four nontraded REIT programs:  Griffin Capital Essential Asset REIT, Inc., Griffin Capital Essential Asset REIT II, Inc., Griffin-American Healthcare REIT III, Inc. and Griffin-American Healthcare REIT IV, Inc. The Company also sponsors two interval funds:  Griffin Institutional Access Real Estate Fund and Griffin Institutional Asset Credit Fund. 

*Includes the property information related to interests held in certain joint ventures. As of June 30, 2018.

Blue Vault Partners reports quarterly on each of Griffin Capital Company’s nontraded REIT programs and semi-annually on the two interval funds that file semi-annual financial statements.

Sources:  Griffin Capital Company, Blue Vault


Learn more about Griffin Capital on the Blue Vault Sponsor Focus page


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John E. Moriarty, ChFC
December 2015
February 3, 2016

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