HGR Liquidating Trust, the liquidating trust of non-traded real estate investment trust Hines Global REIT Inc., has declared a special distribution of $2.45 per unit, paid on September 24, 2020 to shareholders of record at the close of business on September 14, 2020.
The special distribution will be designated as a return of a portion of shareholder’s invested capital and will reduce their remaining investment in the trust.
Hines Global REIT formed HGR Liquidating Trust to complete its plan of liquidation approved by stockholders on July 17, 2018. The trust’s primary purpose is to liquidate assets transferred to it and distribute the sales proceeds to equity holders after paying any of the remaining liabilities. Hines Global REIT distributed units in the trust to its investors, and one unit was distributed for each share of common stock held.
The trust recently sold two of its seven remaining assets. On August 25th, it sold 25 Cabot Square in London for £380.0 million (or approximately $498.8 million) and paid the outstanding mortgage of £123.8 million (approximately $162.5 million on the date of the sale). Days later, it sold The Avenue at Murfreesboro in Nashville for $141.3 million.
After the latest special distribution is paid, the company and the trust will have made total special distributions, including return of invested capital distributions and liquidating distributions, of approximately $7.45 per share/unit between January 2018 and July 2020.
In addition to the $7.45 of special distributions, the REIT paid $5.64 of regular operating distributions since inception, for a combined total of $13.09. The amount of regular operating distributions received by each investor depends on when the investment was made and will be lower for those who invested after inception.
The trust also adjusted its previous $4.58 net asset value per unit to reflect the special distribution, resulting in a new NAV per unit of $2.13.
Hines Global REIT launched in December 2008 and closed its offering in April 2014 after raising $2.7 billion in investor equity.