Written by The White Law Group• March 31, 2021• 5:04 pm• Blog, Current Investigations

CPA:18 – Global – WP Carey Inc. Tender Offer $3.89 per share

CPA:18 – Global – Corporate Property Associates 18 Global Lawsuits Investigation

The White Law Group is investigating potential securities claims involving the liability that brokerage firms may have for recommending CPA:18 – Global – WP Carey Inc. to investors.

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CPA:18 Global, a non-traded REIT sponsored by WP Carey, Inc. has raised close to $1.2 billion in gross proceeds from investors, according to filings with the SEC. The REIT’s lease portfolio reportedly includes self-storage properties and student housing projects. The REIT decreased distributions approximately 60% last year for both Class A and Class C shares, according to filings with the SEC.

According to a letter to shareholders on March 29, Mackenzie Capital Management has launched a tender offer to purchase shares of CPA:18 Global for just $3.89 per share, which may suggest losses for investors as the original offering price was $10 per share.

In August 2020, CPA: 18 Global limited the amount of cash available for its share repurchase program and subsequently announced that $9.5 million and $5.6 million in repurchases went unfulfilled as of the date of its third quarter 2020 report and fourth quarter 2020 report, respectively, according to the letter.

The Trouble with Non-Traded REITs

The trouble with non-traded REITs is that they are complex and inherently risky products.

Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

Potential Lawsuits to Recover Financial Losses

If you have suffered losses investing in CPA:18 – Global – WP Carey Inc., please contact 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.