In the wake of COVID-19, there have been many sudden shutdowns of companies across the country, particularly in the retail industry. However, as Warren Buffet once said, when the tide goes low you learn who has been swimming naked. The current epidemic has helped expose problematic investment recommendations that have nothing to do with COVID-19. Many investors are now learning that investment products recommended to them by their trusted advisors were unsuitable for their portfolios to begin with.
An important class of products that were sometimes improperly recommended to investors to whom they were either not suitable, or not suitable in the quantities in which they were recommended, is real estate investment trusts (REITs). One of the REITs whose investments may have been improperly recommended to some investors is Hines Global REIT.
If you have invested in REITs, you may be concerned about your investments. While some REITs are publicly traded and have seen their price value impacted by the shutdowns, others are illiquid and no reliable valuation may be available. As stated above, while some REITs are suffering because of the current pandemic, others had preexisting issues, which preceded the pandemic.
Hines Global REIT Unsuitable for Some Investors
Many problematic REIT investments have been recommended and sold to investors by brokerage firms that pocketed substantial sales commissions, while the investors are now left holding the bag.
Among the REITs that may have been improperly recommended and sold to some investors by their broker-dealer firms is Hines Global REIT. Broker-dealer firms that made unsuitable investment recommendations to their customers as to Hines Global REIT are being investigated by the Rosca Scarlato REIT attorneys. If you or a loved one have invested in Hines Global REIT, you may be able to pursue arbitrations claims against the brokers and investment advisors who recommended this investment to you, if the REIT was unsuitable to you based on your investment profile and background.
Hines Global REIT is a privately owned, global real estate firm that was founded in 1957 and has approximated $111 billion in assets. In 2018, the board of directors at Hines Global REIT approved the plan to liquidate assets in the company, allowing initial shareholders a distribution, totaling $15.62-16.62 per share upon successful liquidation. This value dropped in 2019 to $6.17 per share.
REIT losses attorney Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to alleged unreasonable investment recommendation by certain financial advisors as to Hines Global REIT. Investors whose brokers improperly recommended and sold them REIT investments without a reasonable basis may have a claim and are encouraged to contact attorney Alan Rosca with any useful information or for a free, no-obligation discussion about their options.
Hines Global REIT Delays Release of NAV Due to COVID-19
Based on a report released in May 2020, Hines Global REIT has chosen not to releases its net asset value (NAV) per share of the companies stock due to the COVID-19 pandemic. The board of directors is now reportedly stating they will not be paying investors any shares due to the adverse market conditions. Hines Global REIT is instead reportedly choosing to set up a reserve for its remaining obligations to cover its expenses.
Recovering Hines Global REIT Losses
As Hines Global REIT price has dropped due to the outbreak of coronavirus, Mackenzie Realty Capital has reportedly offered to purchase investments in Hines Global REIT investors for $1.50 per share, indicating a substantial loss to investors. Hines Global REIT has sent a letter to investors, suggesting that they reject this offer, stating it is taking advantage of low shares prices.
According to FINRA, brokerage firms are required to disclose all risks associated with these types of investments. However, given that non-traded REITs such as Hines Global REIT typically pay brokers and investment advisors higher commissions, those brokers and advisors often become conflicted and have a strong incentive to recommend to customers an investment that makes them a higher sales commission over one that performs better for the customer but pays lower commissions to the advisor.
As a result, brokerage firms that sell non-traded REITs and make unsuitable recommendations to investors can be held accountable for investment losses through a FINRA arbitration. If you or a loved one are concerned about potentially unsuitable investment advice from a broker or financial advisor regarding Hines Global REIT, you are entitled to begin an arbitration process, backed by FINRA.
Invested with Hines Global REIT? Rosca Scarlato REIT Attorneys are investigating.
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related misconduct and are currently investigating potentially unreasonable investment recommendations involving Hines Global REIT, by some of the financial advisors that sold this product. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the globe in cases ranging from arbitrations to class actions.
If you believe that you have lost money as a result of improper investment recommendation in Hines Global REIT by financial advisors, you may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage. Anybody who has useful information relating to the activities of brokers and advisors that recommended and sold Hines Global REIT to investors is also encouraged to contact Rosca Scarlato LLC.
