REIT Watch: Five Broker-Dealers to Pay $8.6 Million in Restitutions for Misselling REITs

on May 23, 2013
Listen

**United States**

**Massachusetts to Receive $975,000 in Fines from Broker-Dealers**
Five broker-dealers will have to pay some $8.6 million (₤5.7 million) in restitutions to investors and $975,000 (₤646,251) in fines under settlements reached with Massachusetts Secretary of State William F. Galvin.
“Our investigation into the sales of ¬REITs, triggered by investor complaints, showed a pattern of impropriety in the sales of these popular but risky investments on the part of independent brokerage firms where supervision has historically been difficult to maintain,” Galvin said in a statement on Wednesday.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

The five firms that settled are: Ameriprise Financial Services, the broker-dealer arm of Ameriprise Financial Inc ; Commonwealth Financial Network; Royal Alliance Associates; Securities America and Lincoln Financial Advisers Corp.
**Cole Corporate Income**
Phoenix-based Cole Corporate Income, one of the six real estate investment trust companies that are owned by Cole Holdings, has recently purchased the headquarters building of U.S. meat purveyor Hillshire Brands in Chicago. The REIT has paid $97.5 million (₤64.63 million) for the 234,000 sq. ft. building.

“This was a unique opportunity to acquire a Class-A, single-tenant office in the desirable West Loop of Chicago,” Boyd Messmann, senior vice president of office and industrial acquisitions for Cole, said in a statement. “One of the key factors was the long-term lease — nearly 15 years — with an investment-grade tenant.”
**Canada**
**Agellan Commercial REIT to Distribute C$0.06458 Dividend for May**

Agellan Commercial (TSE:ACR.UN), a real estate investment trust with a portfolio of industrial, office and retail properties in the U.S. and Canada, said on Wednesday that it would pay a C$0.06458 per share May dividend to shareholders of record on May 31. The cash payout will be made on June 15.
The REIT also announced that it has implemented a distribution reinvestment plan, which would allow shareholders to use their dividends to purchase shares of the company and will receive a “bonus distribution” of shares equal in value to 3% of each distribution.

**Inovalis REIT to Distribute C$0.11688 Dividend for April 10 to May 31**
!m[Cole Corporate Income Pays $97.5 Million for Chicago Office Building, Agellan and Inovalis Announce Dividends](/uploads/story/2486/thumbs/pic1_inline.png)
Inovalis REIT (TSE:ACR.UN), a real estate investment trust with a portfolio of office properties primarily located in France and Germany, said on Wednesday that it would pay a C$0.11688 per share dividend for the April 10 to May 31 period to shareholders of record on May 31. The cash payout will be made on June 17.
**Allied Properties REIT to Acquire Two Properties for C$9 Million**
Allied Properties REIT (TSE:AP.UN) said on Wednesday that it had entered into an agreement to purchase two properties located in Quebec City and Calgary for C$9 million (₤5.77 million). The acquisitions are expected to close in June and August this year and the purchase price represents a capitalisation rate of 7.9 percent. The properties will be free and clear of mortgage financing.
**Agellan Commercial’s share price was C$9.90 as of 23.05.2013, 14.40 GMT.**
**Inovalis’ share price was C$9.90 as of 23.05.2013, 14.40 GMT.**
**Allied Properties’ share price was C$33.83 as of 23.05.2013, 14.40 GMT.**

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Real Estate REITs