The common stock offering consists of 200 million shares at $10each and another 20 million shares at $9.50 apiece under a dividendreinvestment plan. REIT investors must have a minimum annual incomeof $45,000, net worth of $150,000 and be willing to buy a minimum,250 shares for $2,500.

The REIT plans to use up to 90% of the gross proceeds from theinitial offering to start buying properties. According to the SECprospectus, target acquisitions will be CBD or suburban markets inmajor metropolitan cities. Like others in pursuit of officeproduct, the plan is to chase high-quality properties with keylocations, substantial amenities and quality tenants. The REIT willleverage up to 50% of the aggregate value of the real estateinvestments. In the past decade, Hines has raised $6.7 billion inequity for 45 privately offered real estate programs.

Hines REIT Inc., announced in October 2003, has been structuredas a Maryland corporation. Jeffrey Hines, based at the Houstonheadquarters, is head of the REIT's advisory board. In a 2003interview with GlobeSt.com, Keith D. Allaire, managing directorwith Shrewsbury, NJ-based Robert A. Stanger & Co. and Hines'adviser, said the advantage to a direct participation program isinvestors are not subject to the sharp fluctuations of the stockmarket because the shares' value is based on the total value of theREIT's assets. The disadvantage is it is not a very liquidinvestment. In the Hines prospectus, potential investors wereforewarned the offering's private nature will make it difficult tosell shares or they may have to do so at a substantialdiscount.