Hines Global REIT II Cuts Upfront Fees
Hines Global REIT II, a publicly registered non-traded real estate investment trust, has reduced the total up-front fees and expenses paid by investors who purchase class A and class T shares sold in the primary offering, according to a filing with the Securities and Exchange Commission.
The company’s advisor, Hines Global REIT II Advisors, has agreed to pay 1.5 percent of the dealer manager fees that were previously paid with proceeds from the offering. The advisor will not be reimbursed by the REIT in any way for the new dealer manager fee payment, according to the filing.
Class A shares are sold to the public for $9.96 and include a 7 percent selling commission fee ($0.70) and a 3 percent dealer manager fee ($0.30). The advisor’s 1.5 percent portion of the dealer manager fee equals $0.15 per share. Class A DRIP shares are sold for $9.46 with no selling commissions or dealer manager fees.
Class T shares are sold for $9.41 and include a 2 percent selling commission fee ($0.19) and a 2.75 percent dealer manager fee ($0.26). The advisor’s 1.5 percent payment equals $0.14 per share. Class T DRIP shares are priced at $9.08 each and have no selling commissions or dealer manager fees.
The REIT noted that the new fee payment structure reduces the total up-front fees and expenses to be paid by investors from offering proceeds by up to 26.8 percent and 13.8 percent with respect to purchases of class T shares or class A shares, respectively.
Hines Global REIT II, which commenced operations in August 2014, has raised approximately $141.7 million through the sale of class A shares and $41.5 million through the sale of class T shares, as of July 31, 2016. The company owns four real estate investments totaling 1.1 million square feet. The primary offering is expected to terminate on or before August 20, 2017.
