Griffin Capital Essential Asset REIT II Temporarily Suspends Offering in Light of Strategic Review Process
The board of Griffin Capital Essential Asset REIT II Inc., a publicly registered non-traded real estate investment trust, has formed a special committee of independent directors to conduct a review of a potential strategic alternative.
The board of Griffin Capital Essential Asset REIT II Inc., a publicly registered non-traded real estate investment trust, has formed a special committee of independent directors to conduct a review of a potential strategic alternative.
Although specifics were not disclosed in the company’s filings with the Securities and Exchange Commission, strategic alternative transactions can include a company sale or merger, listing shares on a national exchange, or asset liquidation.
The Griffin Capital Essential Asset REIT II board believes that the potential strategic alternative could, among other things, help scale the REIT’s portfolio and potentially enhance stockholder value.
The special committee has engaged SunTrust Robinson Humphrey Inc. to act as its financial advisor to assist in the review process. The company will provide updates when it determines that further disclosure is appropriate or required.
In connection with the review process, the board has approved a temporary suspension of the primary portion of the REIT’s follow-on offering, effective August 17, 2018. The board said that the suspension is in the best interest of the company and its stockholders to allow the committee to evaluate the potential strategic alternative.
The company intends to continue to sell shares through its distribution reinvestment plan and will continue to repurchase shares via its share redemption program.
Griffin Capital Essential Asset REIT II focuses on acquiring a portfolio consisting primarily of single tenant business essential properties throughout the United States and has acquired 35 office and industrial buildings for approximately $1.1 billion.
The offering was declared effective by the SEC in July 2014 and closed in January 2017 after raising $746 million in investor equity. The REIT commenced a follow-on offering as a perpetual life REIT in September 2017, and had raised approximately $23.2 million, as of August 15, 2018.
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