First Union Real Estate Investments Announces an Investment in HQ Global Workplaces.Business Editors NEW YORK--(BUSINESS WIRE)--June 9, 2000 First Union Real Estate Investments (NYSE NYSE See: New York Stock Exchange :FUR) announced today that it has made a $10 million investment in convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". issued by HQ Global Workplaces, a company created by the combination of HQ Global Workplaces and VANTAS. HQ Global Workplaces (HQ) is the largest provider of flexible officing solutions in the world and is privately owned. Its controlling shareholder is Frontline Capital Group (Nasdaq:FLCG). In the transaction, First Union purchased $10 million of the $195 million of preferred stock issued by HQ. Other participants included Equity Office Properties Trust Equity Office Properties Trust, headquartered in Chicago, Illinois, is the largest owner of office buildings in the United States. It was formed in 1976 by Samuel Zell [1] and in February 2007, was acquired by the Blackstone Group for $23 billion plus the assumption of (EOP), Fortress Investment Fund LLC, Stichting Pensioenfonds ABP 1. (networking) ABP - Alternating bit protocol. 2. ABP - Microsoft Address Book Provider. , AEW Capital Management, CIBC Capital Partners, BNP Paribas, and Blackacre Capital Management. The convertible preferred stock accrues a 13.5% PIK PIK See: Payment-in-kind bond PIK See payment-in-kind security (PIK). dividend which increases annually. The shares and accrued dividends are convertible into common shares, if and when HQ conducts an initial public offering. In addition, FUR received warrants with a nominal strike price on approximately 0.40% of the outstanding common stock of HQ on a fully diluted basis. Because Gotham Partners, L.P, whose principals are members of First Union's board of trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. , is a shareholder in Frontline Capital Group and in VANTAS, this investment was reviewed and approved by an independent committee of the board of trustees prior to being approved by the full board of First Union. Certain statements contained in this news release that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include, but are not limited to, changes in market activity, changes in local real estate conditions and markets, actions by competitors, interest rate movements and general economic conditions. Further information about these matters can be found in the information included in the Annual Report filed by the Company with the SEC on Form 10K/A. First Union Real Estate Equity and Mortgage Investments is a NYSE-listed stapled-stock real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) headquartered in New York, New York. |
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