“When we first launched Hines REIT in 2003, it was structured as a perpetual life vehicle, much like many institutional funds,” said Sherri Schugart, president and CEO of Hines REIT.
“Impacts from the great recession caused us to close the fund to new investors in 2009, so we began considering other options that could provide the best opportunities for enhancing stockholder value through the following economic recovery.
(HOUSTON) - Hines Real Estate Investment Trust, Inc.
(“Hines REIT" or the “Company”), one of three public non-listed REITs sponsored by Hines, announced today that its board of directors unanimously voted to approve a plan for liquidation and dissolution of the Company.
A REIT, or real estate investment trust, is a company that owns or finances income-producing real estate.
In addition, all REITs face liquidation if they are unable to distribute the bulk of their earnings to investors in the form of dividends. During the first stage, the REIT company raises money from investors and uses the money raised to buy property.During the second stage, new investments are not allowed and the company spends its time managing the properties in which it originally invested.During the final stage, the assets held by the REIT are either liquidated or the company is transformed into a tradeable REIT.A: The initial liquidating distribution, along with the operating distributions received in 2016, will be reported to shareholders on their 2016 Form 1099-DIV, which we expect to be mailed on or before January 31, 2017.Q: What are the tax implications for Box 8, Cash Liquidation Distributions for Taxable Accounts (such as individual or joint tenant type accounts)?