Did you lose money investing in Hines Global REIT (HGR Liquidating Trust)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing in Hines Global REIT (HGR Liquidating Trust) at the recommendation of their financial advisor. If you suffered losses, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the broker-dealer and/or registered representative that recommended the investment.
UPDATE 7/16/2020: Hines Global REIT reportedly transferred its remaining assets and liabilities and liabilities to the HGR Liquidating Trust, according to SEC filings this week. The trust’s primary purpose is reportedly to liquidate assets transferred to it and distribute the sales proceeds to equity holders after paying any of the remaining liabilities. According to a letter to investors on July 15, HGR Liquidating Trust will be paying shareholders a special distribution of $1.00 per unit on July 31, 2020. The company notes that after this special distribution is paid, the company and the trust will have made total special distributions, including return of invested capital distributions and liquidating distributions, of approximately $5.00 per share/unit between January 2018 and July 2020. The company reports that it has paid “aggregate distributions of $10.64 per unit to holders that have been invested since the inception” of Hines Global REIT. The offering price for Hines Global REIT at the inception was $10.00 per share/unit. According to the letter, the board of trustees has determined a NAV per unit of $5.58 as of June 30, 2020, following the completion of third-party valuations of the Trust’s seven remaining assets. The new NAV represents an approximate 10% decrease from the previous NAV per share of $6.17 determined as of February 14, 2019. The company notes that the decrease was primarily a result of “declines in values of the Trust’s four remaining retail assets, including the most recent negative impact related to the COVID-19 pandemic.” The REIT’s plan of liquidation was reportedly delayed due to the COVID-19 pandemic and its influence on the global economic environment.
UPDATE 4/21/2020: MacKenzie Realty Capital has made a tender offer to buy up to 1 million shares of the REIT’s common stock for $1.50 per share. The offer expires on May 22, 2020.
The REIT’s most recent net asset value per share was $6.17 as of February 14, 2019, and last month, the board decided not to calculate a new net asset value per share in light of the coronavirus (COVID-19) pandemic. The company is in the process of selling its property portfolio after shareholders approved its liquidation and dissolution plan in July 2018. In April 2018, the REIT’s board estimated that total proceeds to investors would range from approximately $10.00 to $11.00 per share, in addition to regular operating distributions paid to stockholders. To date, shareholders have received approximately $4.00 per share of return of invested capital and liquidating distributions.
“In light of various risks and uncertainties, including those related to the COVID-19 pandemic, there can be no assurances as to the timing of future liquidating distributions or that the aggregate liquidating distributions ultimately paid to our stockholders will be within the range originally estimated by our board in April 2018,” the REIT said.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
What are Real Estate Investment Trusts (REIT)?
A Real Estate Investment Trust (“REIT”) is a complex investment that is generally only suitable for sophisticated high-net worth investors, and then only in certain circumstances. A REIT is an entity that owns, and may also manage, income producing real estate. REITs pool capital from multiple investors and use it to purchase properties, similar to mutual funds and other pooled investment vehicles.
A Real Estate Investment Trust can be offered in several different forms. A Public Exchange Listed REIT is registered with the U.S. Securities and Exchange Commission (“SEC”) and is publicly traded on a national securities exchange. A Public Non-Listed REIT is registered with the SEC, but does not trade on a major securities exchange. Finally, a Private REIT, also known as a private-placement REIT, is not registered with the SEC and does not trade on a national securities exchange.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Hines Global REIT (HGR Liquidating Trust) Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as Hines Global REIT (HGR Liquidating Trust), and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Hines Global REIT (HGR Liquidating Trust), or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in Hines Global REIT (HGR Liquidating Trust) and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
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