Griffin Capital Essential Asset REIT Temporarily Suspends Offering in Light of Strategic Review
Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, has temporarily suspended its follow-on offering, share redemption program, and distribution reinvestment plan in order to evaluate a potential strategic transaction.
Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, has temporarily suspended its follow-on offering, share redemption program, and distribution reinvestment plan in order to evaluate a potential strategic transaction.
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 board approved the temporary suspension of the primary portion of the REIT’s follow-on offering effective February 27, 2020, the share redemption program effective March 28, 2020, and the distribution reinvestment plan effective March 8, 2020.
The REIT will accept subscription agreements only if they are signed and dated by the close of business on February 27, 2020. The accounts must be fully funded and in good order no later than the close of business on February 28, 2020.
No share redemptions will be honored for the first quarter of 2020 other than those associated with a stockholder’s death, qualifying disability, or determination of incompetence or incapacitation.
Distributions made after March 8, 2020 (other than the stock distribution declared by the board on December 18, 2019, to be paid on April 1, 2020) will be paid in cash.
Griffin Capital Essential Asset REIT is a self-managed REIT with a portfolio consisting primarily of single tenant business essential properties throughout the United States, diversified by corporate credit, physical geography, product type, and lease duration. As of the fourth of 2019, the company’s portfolio consisted of 99 office and industrial properties (122 buildings) valued at approximately $4.6 billion.
