X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Nearly two years after opting to dissolve to maximize shareholder value, MGI Properties has announced its termination date and the establishment of a liquidation vehicle to dispose of its remaining assets. MGI Chairman W. Pearce Coues says the equity REIT will cease trading on the New York Stock Exchange on Sept. 27th, while its remaining assets will be transferred three days later to the MGI Liquidating Trust.

The board of trustees, meanwhile, declared a liquidating distribution of $1.85 per share to be provided on Sept. 28th to shareholders of record at the close of business on Sept. 14th. MGI is also estimating that the liquidating trust will be able to make future cash distributions of 65 cents per share upon the sale of its three remaining properties.

Founded in 1971, MGI voted to dissolve after the REIT industry fell out of favor in 1998. Global economic fears and concerns that the industry was overextending itself through aggressive acquisitions sent REIT stocks plummeting, with MGI ultimately deciding that its underlying assets were worth more than its stock. The liquidation decision caught analysts off guard given the company’s impressive track record in buying commercial and industrial properties, primarily in New England.

Based in Boston, MGI scooped up most of its local holdings during the depressed market of the early 1990s. In selling its portfolio, MGI has traded 66 properties totaling 5.4 million sf, as well as 959 apartment units. The aggregate sales price for the package, minus $9.6 million for selling expenses and closing adjustments, is $519.6 million.

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.