HGR Liquidating Trust, Hines Global REIT, Letter to Investors

HGR Liquidating Trust (Hines Global REIT) Investment Losses

The White Law Group continues to investigate FINRA arbitration claims involving brokerage firms who may have unsuitably recommended Hines Global REIT (HGR Liquidating Trust) to investors.  If you have suffered investment losses, the securities attorneys at The White Law Group may be able to help you by filing a claim against your brokerage firm.

Hines Global REIT reportedly transferred its remaining assets and liabilities and liabilities to the HGR Liquidating Trust, according to SEC filings this week. The trust’s primary purpose is reportedly to liquidate assets transferred to it and distribute the sales proceeds to equity holders after paying any of the remaining liabilities.

According to a letter to investors on July 15, HGR Liquidating Trust will be paying shareholders a special distribution of $1.00 per unit on July 31, 2020.

The company notes that after this special distribution is paid, the company and the trust will have made total special distributions, including return of invested capital distributions and liquidating distributions, of approximately $5.00 per share/unit between January 2018 and July 2020.

The company reports that it has paid  “aggregate distributions of $10.64 per unit to holders that have been invested since the inception” of Hines Global REIT.” The offering price for Hines Global REIT at the inception was $10.00 per share/unit.

According to the letter, the board of trustees has determined a NAV per unit of $5.58 as of June 30, 2020, following the completion of third-party valuations of the Trust’s seven remaining assets. 

The new NAV represents an approximate 10% decrease from the previous NAV per share of $6.17 determined as of February 14, 2019. The company notes that the decrease was primarily a result of “declines in values of the Trust’s four remaining retail assets, including the most recent negative impact related to the COVID-19 pandemic.”

The REIT’s plan of liquidation was reportedly delayed due to the COVID-19 pandemic and its influence on the global economic environment. 

Hines Global REIT Shareholders may have Claims

Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs have understated or misrepresented the risks and liquidity problems.

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

If you are concerned about your investment in HGR Liquidating Trust (Hines Global REIT) you may be able to file a complaint against your brokerage firm.  Please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit http://whitesecuritieslaw.com.