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Hines REIT Continues Liquidation Plan with Multiple Asset Sales

Hines Real Estate Investment Trust Inc., a publicly registered non-traded REIT, continued with its previously announced plan of liquidation with the sale of an iconic Dallas office tower and a 7-building grocery-anchored shopping center portfolio.

Hines REIT sold JPMorgan Chase Tower in Dallas to private real estate firm Fortis Property Group LLC for approximately $273 million. The net proceeds received by Hines REIT from this sale were $214.1 million after the loan payoff of $48.9 million and credits and closing costs, according to a filing with the Securities and Exchange Commission.

Chase Tower is a 55-story, class A office tower located at 2200 Ross Avenue in Dallas’ Arts District/Midtown area. Completed in 1987, the 1.3 million-square-foot property was designed by Skidmore, Owings & Merrill and is 76 percent leased. Hines REIT originally acquired the building in November 2007 for a contract purchase price of $289.6 million.

In June, the Hines REIT board of directors approved a plan for liquidation and dissolution of the company. It is estimated that the plan, upon stockholder approval, will result in approximately $6.35 to $6.65 per share of common stock. Hines REIT previously distributed $1.01 per share from July 2011 through April 2013 which was designated as partial return of invested capital. Shares were originally priced between $10.00 and $10.40 each.

In addition to the Chase Tower sale, Hines REIT also sold a 650,400-square-foot portfolio of seven grocery-anchored shopping centers located in Georgia, Florida, Texas and North Carolina for $158 million to Preferred Apartment Communities Inc. (NYSE: APTS).

Hines Real Estate Investment Trust went effective in June 2004 and raised $2.3 billion in investor equity prior to closing its offering. In total, the company has acquired interests in 66 properties since its inception and has sold its interests in 42 of those properties, as of June 30, 2016.

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