HOUSTON—Hines Real Estate Investment Trust Inc. said Friday it had completed its sale of seven West Coast office assets to an affiliate of Blackstone Real Estate Partners VIII for $1.162 billion, a deal first announced this past July. Shareholders in Hines REIT approved the board-recommended plan for liquidation during the REIT's annual shareholder meeting this past Monday.
“The sale of seven of our West Coast office assets to a Blackstone affiliate was a significant and positive transaction and a result of our focus on maximizing the assets' appeal to the institutional market and providing Hines REIT's investors with an attractive outcome,” says Sherri Schugart, president and CEO of Hines REIT. “The vast majority of our investors will have experienced a positive return on their investment in Hines REIT given the cash distributions we have paid through the years combined with capital we expect to return to investors as a result of this liquidity event and capital we have returned in previous years. We are pleased with this performance relative to the performance of many of our peers and other investment alternatives that had comparable investment strategies and timing, especially considering the impact of the financial crisis and economic downturn during 2008 and 2009.”
The sale to BREP VIII trades an office portfolio totaling three million square feet from properties in Los Angeles, the Bay Area and the Seattle metro area. It includes Howard Hughes Center in Los Angeles; the Daytona and Laguna campuses in Redmond, WA and the six-story 5th and Bell in Seattle; 2100 Powell in Emeryville, CA; 2851 Junction Ave. in San Jose, CA; and 1900 and 2000 Alameda in San Mateo, CA.
Eastdil Secured advised Hines REIT on the deal and Robert A. Stanger & Co. provided certain financial advisory services to its board. Baker Botts provided legal counsel to Hines REIT, while BREP VIII was represented by Simpson Thacher & Bartlett.
In an SEC filing, Hines REIT said Thursday it had sold Civica Office Commons in Bellevue, WA to AEW CPT Acquisitions LLC. The sale price was approximately $193 million, excluding transaction costs.
Year to date, Hines REIT has sold 22 of its directly owned properties for $2.3 billion, before transaction costs and retirement of debt. During the same time period, the Hines US Core Office Fund LP, in which Hines REIT owns a 28.8% LP interest, sold four of its properties for gross proceeds of $762.7 million. Hines REIT is in the process of liquidating the few remaining assets it owns directly and through its interest in Hines US Core Office Fund LP and currently anticipates those sales will be completed before year end.
When plans to dissolve the REIT were first announced in July, Schugart said, “When we first launched Hines REIT in 2003, it was structured as a perpetual life vehicle, much like many institutional funds. Impacts from the great recession caused us to close the fund to new investors in '09, so we began considering other options that could provide the best opportunities for enhancing stockholder value through the following economic recovery.” Hines REIT was the first of what are now three non-traded REITs sponsored by Hines.
HOUSTON—Hines Real Estate Investment Trust Inc. said Friday it had completed its sale of seven West Coast office assets to an affiliate of Blackstone Real Estate Partners VIII for $1.162 billion, a deal first announced this past July. Shareholders in Hines REIT approved the board-recommended plan for liquidation during the REIT's annual shareholder meeting this past Monday.
“The sale of seven of our West Coast office assets to a Blackstone affiliate was a significant and positive transaction and a result of our focus on maximizing the assets' appeal to the institutional market and providing Hines REIT's investors with an attractive outcome,” says Sherri Schugart, president and CEO of Hines REIT. “The vast majority of our investors will have experienced a positive return on their investment in Hines REIT given the cash distributions we have paid through the years combined with capital we expect to return to investors as a result of this liquidity event and capital we have returned in previous years. We are pleased with this performance relative to the performance of many of our peers and other investment alternatives that had comparable investment strategies and timing, especially considering the impact of the financial crisis and economic downturn during 2008 and 2009.”
The sale to BREP VIII trades an office portfolio totaling three million square feet from properties in Los Angeles, the Bay Area and the Seattle metro area. It includes Howard Hughes Center in Los Angeles; the Daytona and Laguna campuses in Redmond, WA and the six-story 5th and Bell in Seattle; 2100 Powell in Emeryville, CA; 2851 Junction Ave. in San Jose, CA; and 1900 and 2000 Alameda in San Mateo, CA.
Eastdil Secured advised Hines REIT on the deal and Robert A. Stanger & Co. provided certain financial advisory services to its board.
In an SEC filing, Hines REIT said Thursday it had sold Civica Office Commons in Bellevue, WA to AEW CPT Acquisitions LLC. The sale price was approximately $193 million, excluding transaction costs.
Year to date, Hines REIT has sold 22 of its directly owned properties for $2.3 billion, before transaction costs and retirement of debt. During the same time period, the Hines US Core Office Fund LP, in which Hines REIT owns a 28.8% LP interest, sold four of its properties for gross proceeds of $762.7 million. Hines REIT is in the process of liquidating the few remaining assets it owns directly and through its interest in Hines US Core Office Fund LP and currently anticipates those sales will be completed before year end.
When plans to dissolve the REIT were first announced in July, Schugart said, “When we first launched Hines REIT in 2003, it was structured as a perpetual life vehicle, much like many institutional funds. Impacts from the great recession caused us to close the fund to new investors in '09, so we began considering other options that could provide the best opportunities for enhancing stockholder value through the following economic recovery.” Hines REIT was the first of what are now three non-traded REITs sponsored by Hines.
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