Hines REIT to dissolve

July 11, 2016



Hines REIT to dissolve


July 11, 2016 | by Beth Glavosek | Blue Vault

In late June, Hines Real Estate Investment Trust (Hines REIT) announced its decision to liquidate and dissolve, subject to shareholder approval. Launched in 2004, Hines REIT was the first public offering by Hines Securities.

Hines’ other offerings include Hines Global REIT (closed to new investors), HMS Income Fund, and Hines Global REIT II. These four investment products held approximately $6.4 billion in collective assets under management as of March 31, 2016.

As of March 31, Hines REIT owned 27 properties totaling approximately 11.3 million square feet. In May, the REIT entered into contracts to sell the Chase Tower in Dallas and 321 North Clark in Chicago. In June, the REIT entered into an agreement to sell its Grocery-Anchored Portfolio consisting of eight grocery-anchored shopping centers located primarily in the southeastern United States.

President and CEO of Hines REIT, Sherri Schugart, said that the REIT closed to new investors in 2009 as a result of the recession. Since that time, Hines REIT has explored options for providing the best opportunities to enhance shareholder value. “After our management and Board of Directors considered a variety of strategic alternatives to maximize stockholder value through a liquidity event, we are confident that the plan of liquidation achieves that goal,” Schugart explained.

The liquidation plan, if approved by shareholders, would include selling seven of the REIT’s West Coast office assets (located in California and Washington) to an affiliate of Blackstone Real Estate Partners VIII. Hines REIT will then pursue a plan of complete liquidation and dissolution for its remaining assets.

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Thomas E. Burns, III
July 29, 2015
February 22, 2016

I subscribe to Blue Vault to keep up with the sponsors and their wholesalers! The analysis keeps me up to date with the various portfolios and the way they are managed, including the differences between them.