Investor Alert: Corporate Property Associates 18 Global (CPA:18)

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 Corporate Property Associates to investors.  

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% in 2020 for both Class A and Class C shares, according to filings with the SEC. 

According to a letter to shareholders on March 28, Mackenzie Capital Management has launched a tender offer to purchase shares of CPA:18 Global for $8.00 per share. 

As we previously reported, CPA:18 and W.P. Carey Inc. announced a potential merger transaction between CPA:18 and WPC; each Share of CPA:18 will receive 0.0978 shares of WPC stock and $3.00 in cash. While the proposed merger is estimated to close in the 3rd quarter 2022, there is no guarantee that it will go through or how the stock will perform if it does. 

CPA: 18 Global suspended its share repurchase program on February 28, except for death, disability, or long-term care confinement of stockholder, according to the letter.  To learn more, please see:

How Does a Merger Affect Shareholders?

Companies often merge as part of a strategic effort to boost shareholder value, often by creating new business lines and/or gaining greater market share. However, the economic environment at the time of the merger, size of the companies and management of the merger process all play a part in future returns for shareholders.    

Shareholders may experience a significant loss of voting power, and while the spike in trading volume tends to inflate share prices, if economic conditions are not favorable at the time of the merger, shareholders may see significant losses. 

Investing in 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. 

 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 and Seattle, Washington.