Hines Global REIT II Files Follow-On Offering to Become Perpetual NTR
August 21, 2017 | James Sprow | Blue Vault
Hines Global REIT II Inc. filed for a second best-efforts offering of up to $2.50 billion of its common shares. The common stock subject to the follow-on offering is classified into class T, S, D and I shares. The initial offering price for the shares in the primary offering will be $10.00 per class T share and class S share, and $9.65 per class D share and class I share. The per-share price will vary depending on monthly valuations of the company’s net asset value.
The company is also proposing to restructure the share classes in line with its goal of becoming a perpetual life, non-listed real estate investment trust. The company said its independent directors approved the key terms of the restructuring, which is expected to go into effect once the registration statement is declared effective by the SEC.
Before the follow-on offering commences, the company plans to amend its charter to redesignate its issued and outstanding class A, T, I and J shares as class AX, TX, IX and JX shares, respectively. It will also reclassify its authorized but unissued common stock into four additional classes that will be called class T, S, D and I shares, which will be collectively known as common shares.
In addition, the company plans to launch a tender offer for a portion of its issued and outstanding class A, T and I shares on or about Oct. 3 once a new NAV per share is announced. The proposed tender offer is expected to be approved by the board at a later date. Accordingly, the company said it suspended its share redemption programs, effective immediately, until the proposed tender offer is terminated.
The company aims to use the net proceeds from the follow-on offering for investments, to reduce borrowings and repay debt, and to fund share redemptions.
Hines Global REIT II, which is sponsored by Hines Interests LP, seeks to invest primarily in a diversified portfolio of commercial real estate properties and other real estate investments across the U.S. and worldwide. As of Aug. 1, the company owned interests in seven real estate investments with a total of 2.6 million square feet of leasable space.
Hines Securities Inc. is the dealer manager for the new offering.
Learn more about Hines Securities, Inc. by visiting the Blue Vault Sponsor Focus page.
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