Sale marks major step in execution of shareholder-approved liquidation plan
(HOUSTON) – Hines Real Estate Investment Trust, Inc. (“Hines REIT”) announced today it has completed the sale of seven West Coast office assets to a Blackstone affiliate for $1.162 billion. Shareholders approved the board-recommended plan to liquidate and dissolve Hines REIT during its annual shareholder meeting on November 7. Hines REIT was the first of three non-traded REITs sponsored by the international real estate firm.
So far in 2016, Hines REIT has sold 22 of its directly owned properties for $2.3 billion, before transaction costs and retirement of debt. In addition, during that same time period, the Hines US Core Office Fund LP, in which Hines REIT owns a 28.8 percent LP interest, sold four of its properties for $762.7 million, before transaction costs and retirement of debt. Hines REIT is in the process of liquidating the few remaining assets it owns directly and through its interest in Hines US Core Office Fund LP and currently anticipates those sales will be completed before year-end.
“The sale of seven of our West Coast office assets to a Blackstone affiliate was a significant and positive transaction and a result of our focus on maximizing the assets’ appeal to the institutional market and providing Hines REIT’s investors with an attractive outcome,” said Sherri Schugart, President and CEO of Hines REIT. “The vast majority of our investors will have experienced a positive return on their investment in Hines REIT given the cash distributions we have paid through the years combined with capital we expect to return to investors as a result of this liquidity event and capital we have returned in previous years. We are pleased with this performance relative to the performance of many of our peers and other investment alternatives that had comparable investment strategies and timing, especially considering the impact of the financial crisis and economic downturn during 2008 and 2009.”
Hines REIT currently expects to initially distribute a significant portion of the net proceeds from the completed asset sales to its shareholders before the end of this year and to have one or more additional liquidating distributions to its shareholders during the first quarter of 2017, after all remaining business activities are concluded. Hines REIT presently expects that the aggregate liquidating distributions to its shareholders will be within the range of $6.35 to $6.65 per share, as disclosed when Hines REIT announced the plan of liquidation. In addition to these liquidating distributions, Hines REIT previously paid special distributions totaling $1.01 per share from July 2011 through April 2013, which were designated as a partial return of invested capital to shareholders. For additional information regarding the voting results from our annual meeting, please see Hines REIT’s 8-K filing dated November 7, 2016.
About Hines REIT
Hines REIT is a public, non-listed real estate investment trust sponsored by Hines. Hines REIT was formed in August 2003 for the purpose of investing in and owning interests in real estate. In total, Hines REIT acquired interests in 66 properties, representing approximately 33 million square feet, since its inception and has sold its interests in 63 of those properties as of November 10, 2016. For additional information about Hines REIT, visit www.hinessecurities.com.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 192 cities in 20 countries. Hines has $93.2 billion of assets under management, including $47.9 billion for which Hines provides fiduciary investment management services, and $45.3 billion for which Hines provides third-party property-level services. The firm has 105 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,180 properties, totaling over 379 million square feet. The firm’s current property and asset management portfolio includes 483 properties, representing over 199 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.