UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): | April 16, 2013 |
Hines Global REIT, Inc.
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Exact name of registrant as specified in its charter)
Maryland | 000-53964 | 26-3999995 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
2800 Post Oak Blvd, Suite 5000, Houston, Texas | 77056-6118 | ||||
(Address of principal executive offices) | (Zip Code) | ||||
Registrant’s telephone number, including area code: | (888) 220-6121 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into Material Definitive Agreement
On April 16, 2013, a wholly-owned subsidiary of Hines Global REIT, Inc. (“Hines Global”) entered into a contract with PV Campus Parcel 3, L.P. (the “Seller”) to acquire the Campus at Playa Vista, a four-building office complex located in Los Angeles, California. The Seller is not affiliated with Hines Global or its affiliates. The Campus at Playa Vista was constructed in 2009 and consists of 324,955 square feet of rentable area that is 97% leased.
Belkin International, Inc., a private technology manufacturer and supplier, leases approximately 150,023 square feet, or approximately 46%, of the rentable area of Campus at Playa Vista, under a lease that expires in November 2021. Further, the University of Southern California, a private research university, leases approximately 103,167 square feet, or approximately 32%, of the rentable area of Campus at Playa Vista, under a lease that expires in May 2020. Additionally, Internet Corporate for Assigned Names and Numbers, a not-for-profit entity responsible for the coordination of Internet Protocol addresses and the management of domain name spaces, leases approximately 36,080 square feet, or approximately 11%, of the rentable area of Campus at Playa Vista, under a lease that expires in June 2022. The remaining space is leased to four tenants, none of which leases more than 10% of the net rentable area of the Campus at Playa Vista.
Although not determined until closing, Hines Global expects the total acquisition cost to be approximately $218.0 million, exclusive of transaction costs and working capital reserves. Hines Global expects the closing of this acquisition to occur in May 2013, subject to a number of closing conditions. Hines Global funded a $25.0 million earnest money deposit on April 17, 2013. There is no guarantee that this acquisition will be consummated and Hines Global’s deposit may not be refunded in such event.
Statements in this Current Report on Form 8-K, including intentions, beliefs, expectations or projections relating to the acquisition described herein, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on current expectations and assumptions with respect to, among other things, future economic, competitive and market conditions and future business decisions that may prove incorrect or inaccurate. Important factors that could cause actual results to differ materially from those in the forward looking statements include the risks associated with Hines Global’s ability to consummate the acquisition and other risks described in the “Risk Factors” section of Hines Global’s Annual Report on Form 10-K for the year ended December 31, 2012 and its other filings with the Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Hines Global REIT, Inc. | |||||
April 19, 2013 | By: | /s/ J. Shea Morgenroth | |||
Name: J. Shea Morgenroth | |||||
Title: Chief Accounting Officer and Treasurer | |||||