CNL Growth Properties Inc. has engaged CBRE Capital Advisors Inc. as the exclusive financial advisor to the firm as it explores strategic alternatives for future stockholder liquidity.
According to an SEC filing, having taken into consideration the closing of CNL’s follow-on public offering in April 2014, completion of its acquisition phase in April 2015, and the estimated time needed to complete its development phase and achieve substantial stabilization of its assets, the company and its advisor have begun to explore strategic alternatives for its multifamily portfolio.
On August 26, 2015, the company’s board of directors appointed a special committee comprised of James P. Dietz and Stephen P. Elker, its independent directors, to oversee the process of exploring strategic alternatives for future stockholder liquidity.
As part of the process of exploring strategic alternatives available, the company engaged Los Angeles-based CBRE Capital Advisors Inc. to act as exclusive financial advisor to the company to assist with this process.
CBRE Cap will provide various financial advisory services, as requested by the company and the board of directors and as customary for an engagement in connection with exploring strategic alternatives.
Although CNL Growth Properties has begun the process of exploring strategic alternatives, according to the company there is no specific date by which the REIT must have a liquidity event, and there is no assurance that it will have a liquidity event in the near term or that, in the event of a transaction, that the process will result in stockholder liquidity, that it will be able to meet its investment objectives, or provide a return to stockholders that equals or exceeds the price per share stockholders paid for shares of our common stock.
CNL Growth Properties was organized as a Maryland corporation in December 2008 and has elected to be taxed, and currently qualifies as a real estate investment trust for federal income tax purposes. CNL Financial Group LLC sponsors the company.
As of September 30, 2015, the company owned interests in 15 Class A multifamily properties located in the southeastern and sunbelt regions of the US, 10 of which were operational, and five properties that are under development, with completion expected in phases by the third quarter of 2016. Based on purchase price, the company’s portfolio is valued at approximately $500 million.
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