April 24, 2018 11:56 PM ET

Equity Real Estate Investment Trusts (REITs)

Company Overview of Hines Real Estate Investment Trust, Inc.

Company Overview

Hines Real Estate Investment Trust, Inc., a real estate investment trust (REIT), engages in investing in and owning interests in real estate, primarily of office properties in the United States and Canada. As of December 31, 2007, the company owned interests in 39 office properties located in the United States; a mixed-use office and retail property in Toronto, Ontario; and an industrial property in Rio de Janeiro, Brazil. It also holds interests in a 64-story office building located in the Galleria/West Loop submarket of Houston, Texas; a 2.8 acre park and waterwall; and a 2.3-acre land parcel. The company has elected to be taxed as REIT under the Internal Revenue Code. As a REIT, it would ...

2800 Post Oak Boulevard

Suite 5000

Houston, TX 77056

United States

Founded in 2003

Phone:

888-220-6121

Key Executives for Hines Real Estate Investment Trust, Inc.

Chief Executive Officer and President
Age: 51
Secretary & CFO
Age: 45
Chairman of the Board
Age: 62
Executive Vice President of European Region of Hines REIT Properties L P - General Partner
Age: 69
Executive Vice President of Eurasia Region of Hines REIT Properties L P - General Partner
Compensation as of Fiscal Year 2017.

Hines Real Estate Investment Trust, Inc. Key Developments

Hines Real Estate Investment Trust, Inc. and Hines Advisors Limited Partnership Announce Settlement Agreement

On August 11, 2016, a purported class of stockholders filed a lawsuit in the Circuit Court of Maryland for Baltimore City alleging both derivative and direct claims against Hines Real Estate Investment Trust, Inc., Hines Advisors Limited Partnership and its owners, certain affiliated entities and current and former members of the company's Board of Directors. The Action alleges that the defendants breached their fiduciary, contractual and other duties, caused the waste of corporate assets, and misappropriated corporate assets in connection with certain payments related to the participation interest held by HALP Associates Limited Partnership in Hines REIT Properties, L.P., that have been, or will be, made to certain affiliated entities in connection with the company's Plan of Liquidation and in connection with other payments that have previously been made to such affiliated entities. The complaint seeks monetary damages from the Hines affiliated entities and individual defendants, as well as attorneys' fees and certain other remedies. The company and the other defendants continue to believe that the purported claims against them are wholly without merit and expressly maintain that they diligently and scrupulously complied with their fiduciary and other legal duties. However, the company and the defendants recognize the burden, expense, and uncertainties inherent in further litigation of the Action, which has delayed the issuance of a final liquidating distribution to the stockholders and the completion of the wind up of the company. As such, on January 19, 2018, counsel for the plaintiffs and the defendants reached an agreement in principle to resolve this litigation. On March 2, 2018, the Court preliminarily approved the proposed settlement of this litigation as provided for in the Stipulation and Agreement of Settlement, dated February 28, 2018 agreed to by the parties and filed with the Court, which releases all claims against the defendants without any liability or wrongdoing attributed to them. The Settlement Agreement requires the defendants (or their insurers) to pay a total of $3,250,000 (the Gross Settlement Amount), minus any award of attorneys' fees and expenses to plaintiffs' counsel and any awards to the nominal plaintiffs (Net Settlement Amount) to the company for distribution to the company's stockholders (with no amount of the Net Settlement Amount proceeds to be distributed to HALP). There is no proof of claim process. Stockholders of record as of March 2, 2018, will receive a pro rata share of the Net Settlement Amount. To facilitate the Settlement, the company has stopped accepting transfers of shares of the company (except for transfers to effect a change of custodian that do not result in a change in beneficial ownership of such shares) as of March 2, 2018, so that it can comply with the terms of the Settlement Agreement. No distribution of the net settlement amount will be made unless and until the Settlement is approved by the Court and becomes final. The Court has scheduled a settlement hearing on June 6, 2018, to make a final determination whether the Settlement should be approved by the Court as fair, reasonable, adequate, and in the best interests of the company as nominal defendant and of the class members. Accordingly, there can be no guarantee that the Court will approve the Settlement so that it can be concluded, in which event the litigation could continue for an indefinite period of time which could delay the winding up of the company and potentially result in the reduction or elimination of the amount actually distributed to the stockholders in any final liquidating distribution. If the Court approves the Settlement on June 6, 2018, then the company expects to make a final liquidating distribution shortly thereafter to all stockholders, which will complete the winding up of the company's operations. The company presently estimates the amount would be in the range of $0.05 - $0.07 per share.

Hines Real Estate Investment Trust, Inc. Announces Liquidating Distribution

Hines Real Estate Investment Trust, Inc. announced that the Court heard oral argument on December 13, 2016, and the motions to dismiss remain pending as of the date of this Notice. Pursuant to the Plan of Liquidation, and with the authorization of the Board, the company declared an initial liquidating distribution of $6.20 per share to all Stockholders of record as of December 7, 2016, which was funded for distribution on December 23, 2016. On March 7, 2017, Hines REIT filed its Articles of Dissolution with the State Department of Assessments and Taxation of Maryland pursuant to the plan. On March 31, 2017, the Board authorized the company to declare an additional liquidating distribution of $0.30 per share to all Stockholders of record as of April 17, 2017. This payment was funded for distribution on April 18, 2017. The company also has maintained a reserve account, which proceeds in such account amount to approximately $16 million.

Hines Real Estate Seeks Sale Of North Loop Building

Hines Real Estate Investment Trust, Inc. is planning for the sale of North Loop building. Hines this fall put the North Loop building up for sale, according to sources.

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
May 2, 2017
Office Buildings At 455, 555, 601, 655, 701 and 740 University Ave.
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