Earlier this week, the Houston-based global property owner and investor Hines announced that the board of directors of Hines Global REIT, Inc. unanimously approved a plan to liquidate the 33-property global investment portfolio. The plan, which is still subject to the approval by the REIT’s shareholders, would sell of a number of properties across the globe, including the company’s The Summit property in Bellevue located at 355 110th Ave NE.
“Because we’re seeing strong capital markets interest at the portfolio, sub-portfolio, and individual asset level for our remaining high-quality assets, we believe the time is right to recommend a plan of liquidation for the Company in an effort to bring liquidity and maximize value to our shareholders,” said Sherri Schugart, president and chief executive officer of Hines Global REIT in a statement.
The Hines Global REIT portfolio currently consists of 33 assets—representing 13.9 million square feet that is 90 percent leased, of which, approximately 61 percent is located throughout the United States and 39 percent is located internationally, the statement said.
Hines Global REIT raised $3.1B in equity through April 2018. In total, the company acquired interests in 45 diversified properties, representing approximately 17.5 million square feet in the U.S. and abroad in Great Britain, Germany, France, Poland, Russia and Australia. The company has made strategic asset dispositions, including selling properties for a gross sales price of $998 million in 2017, as well as completing the sale of One Westferry Circus in London for a gross sales price of $153.5 million on April 12, 2018.
In California, the properties in the portfolio include 550 Terry Francois, which the company purchased in August of 2012 for $180 million at 8.2 percent going-in cap rate—the 289,408 square foot property is 100 percent leased to Gap. Others are The Campus at Playa Vista in Los Angeles. This property was purchased in May of 2013 for $216.6 million at 5.7 percent going-in cap rate. The 325,000 square foot campus is 99 percent leased. Also included is 2300 Main in Irvine, which was purchased in August of 2013 for $140.9 million at a 4.8 percent going-in cap rate. This 268,000 square foot property is 95 percent leased.
In Bellevue, Wash., the REIT also owns The Summit, a 524,130 square foot office complex that is 98 percent filled. Hines purchased The Summit in March of 2015 for $316.5 million at a 5.6 percent going-in cap rate. Major tenants at The Summit include New York Life Insurance, Perkins Coie, Puget Sound Energy and Sterling Savings Bank.