Hines to Sell Offices to Blackstone Affiliate for $1.16 Billionby
Hines Real Estate Investment Trust Inc. said it’s selling seven office properties in the U.S. West to an affiliate of Blackstone Real Estate Partners VIII for $1.16 billion as part of a liquidation of the REIT.
The buildings Hines REIT is selling to the Blackstone affiliate have about 3 million square feet (279,000 square meters) of office space and include Howard Hughes Center in Los Angeles and properties in Seattle and Redmond, Washington, and Emeryville and San Jose, California. The transaction is subject to stockholder approval of the liquidation plan, the seller said in a statement Thursday.
Hines REIT, one of three non-listed REITs sponsored by Houston-based Hines, said that its board unanimously approved a liquidation and dissolution to take advantage of strong demand for high-quality assets by institutional buyers. The REIT plans to distribute $6.35 to $6.65 a share to its stockholders as a result of the liquidation.
“After our management and board of directors considered a variety of strategic alternatives to maximize stockholder value through a liquidity event, we are confident that the plan of liquidation achieves that goal,” Hines REIT Chief Executive Officer Sherri Schugart said in the statement.