Hines Global REIT II, a publicly registered non-traded real estate investment trust, amended its pre-effective registration statement with the Securities and Exchange Commission to increase the offering price for its shares and to change its name to Hines Global Income Trust Inc.
As reported by The DI Wire in mid-August, the company filed a $2 billion follow-on offering with four share classes of common stock and $500 million distribution reinvestment plan shares. The company also announced plans to restructure as a perpetual life REIT with monthly net asset value per share valuations.
The company increased the price of its shares by $0.04 to reflect its updated NAV of $9.69 per share as of August 31, 2017. The company plans to offer four share classes, including Class T, Class S, Class D, and Class I shares and intends to use the proceeds to invest in a diversified portfolio of commercial real estate properties and other real estate investments in the United States and internationally.
Class T shares will be priced to the public for $10.04 each and include a 3 percent selling commission, a 1 percent annual stockholder servicing fee, and a 0.5 percent dealer manager fee to Hines Securities Inc.
Class S shares will be priced for $10.04 each and include a 3.5 percent selling commission, a 1 percent annual stockholder servicing fee, and no dealer manager fees.
Class D shares will be priced at $9.69 each and include a 0.25 percent annual stockholder servicing fee, but no selling commission or dealer manager fee.
Class I shares are also priced at $9.69 and have no selling commission, dealer manager fee, or stockholder servicing fee.
Class T and Class S shares are available through brokerage and transaction-based accounts, Class D shares are generally available through fee-based programs, and Class I shares are generally purchased by institutional investors.
Class T, Class S, and Class D shares have a minimum initial investment of $2,500, while Class I shares have a minimum investment of $1 million.
Hines Global REIT II was declared effective in August 2014 and raised $400 million in investor equity, as of the third quarter 2017. The company owns a portfolio of seven properties with a total acquisition cost of approximately $638.5 million, according to Summit Investment Research. The company suspended its offering in September 2017 to register its follow-on as a perpetual life REIT.