Real Estate Investment Trust Faces Economic Disruption from COVID-19.
Sonn Law Group is representing investors who have suffered losses investing in The Parking REIT. REITs have seen a significant decline during coronavirus pandemic. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
The Parking REIT Inc. is a publicly registered non-traded real estate investment trust that was formed by the merger of MVP REIT and MVP REIT II in December 2017. The board of Parking REIT has suspended distributions paid on the company’s Series A and Series 1 Preferred Stock until further notice due to potential economic disruption caused by the COVID-19 pandemic.
The letter sent to investors in April 2020, the company stated that the option to provide liquidity to shareholders on a stock exchange is “not currently viable” and “there can be no assurance that the company will cause a liquidity event to occur in the near future or at all.” The Parking REIT indicated that unpaid preferred distributions will continue to accrue until they are declared by the board or otherwise paid following a liquidity event.
This news comes after The Parking REIT announced that its board unanimously approved the suspension of all cash distributions and stock dividends. The company has also been subject to an investigation by the SEC. The Parking REIT was named in a class action lawsuit filed by shareholders alleging that proxy statements MVP II filed with the SEC to get approval for the merger contained false and misleading statements.
The Parking REIT primarily invests in parking lots and garages nationwide and overseas, including a portfolio of 38 parking facilities purchased for approximately $309.9 million. The company began operations in December 2015 and raised nearly $61.3 million in the initial public offering. The company later launched a series of private placement offerings and sold $2.5 million in Series A Convertible Redeemable Preferred Stock and $36 million in Series 1 Convertible Redeemable Preferred Stock.
Contact Sonn Law to Discuss Recovery Options
If you suffered losses investing in The Parking REIT, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.