The board of Hines Global REIT, a publicly registered non-traded real estate investment trust, is urging investors to reject an unsolicited tender offer made by CMG Partners, CMG Income Fund II, and CMG Liquidity Fund. CMG is offering to purchase up to 250,000 shares of Hines Global REIT common stock for $4.30 each.
In July 2018, shareholders approved the company’s plan of liquidation and dissolution, and since that time, Hines Global REIT has sold 21 properties in its portfolio and expects to make total liquidating distributions of approximately $8.83 to $9.83 per share. The company has already paid stockholders liquidating distributions totaling $2.83 per share.
The tender offer price is 30 percent lower than the REIT’s most recent net asset value per share of $6.17, as of February 14, 2019. Shares were originally sold for $10.00 each.
“We believe that the tender offer represents an opportunistic attempt to purchase shares at a significant discount resulting in a profit for the purchaser while depriving the stockholders who tender their shares in the tender offer of the opportunity to realize the full potential value of their investment,” wrote Jeffrey Hines, chairman of Hines Global REIT, in a letter to shareholders.
Hines Global REIT launched in December 2008 and closed its offering in April 2014 after raising $2.7 billion in investor equity. The company’s portfolio is comprised of 12 assets located in the U.S. and abroad.