As a non-listed real estate investment trust (REIT), Hines Global REIT owned and managed a domestic and foreign real estate portfolio. The company, created in 2009, at one point owned 45 real estate related investments or properties in places like the United States, France, UK, Poland, Germany, Russia and Australia.
However, in July of 2018, the company began selling its assets as part of a plan of liquidation and dissolution. The plan involved HGR Liquidating Trust taking on Hines Global REIT’s assets and liabilities as of June 30, 2020. Apparently, Hines Global REIT’s prior stockholders obtained units of beneficial interest in HGR Liquidating Trust as part of the arrangement.
HGR Liquidating Trust Comes Into Play
At this point, HGR Liquidating Trust, which is worth a reported $1,200,000,000, is trying to sell whatever assets it has left and provide those proceeds to unitholders. As of June 30, 2020, the board of trustees indicated that the NAV per unit is $5.58. After it makes a special distribution of $1 per share at the end of this month, the NAV for each HGR unit will become $4.58.
Apparently, on July 15, 2020, HGR updated investors on the liquidation and dissolution of Hines Global REIT assets. Evidently, the company expected to sell all of its assets by July 17, 2020 but was unable. Notably, HGR relayed that uncertainties and disruptions relating to Covid-19 made a substantial impact on its plan of completion.
Financial Advisors Recommending Unsuitable Non-Traded REITS
It is possible that a financial advisor recommended or sold you a non-traded REIT such as Hines Global REIT. First of all, non-traded REITS are illiquid investments since there is no public marketplace for you to freely purchase and sell your units. This can pose a problem for investors who require liquidity. Secondly, the fees on these investments are typically high, and early redemptions of these products can erode your returns. Thirdly, although non-traded REITs aim to produce income, there are no guaranteed distributions. Not only that, but non-traded REIT distributions can come from principal.
Sometimes financial advisors fail to recommend investments which are suitable for investors based on things like their risk tolerance, investment objectives and liquidity needs. Some may even fail to consider your interests and instead think of the commissions or fees that they can generate, reflecting a breach of fiduciary duty. Further, some financial advisors might have negligently misrepresented the risks or the terms of investing in these products. All of these sales practice violations serve as a foundation to sue the financial advisor for any losses you incurred.
Losses By Investing In Hines Global REIT Because Of Your Financial Advisor?
Suffered losses because of investing in Hines Global REIT because of your securities broker or financial advisor? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of securities brokers and financial advisors.