Griffin Capital Launches Griffin Institutional Access Real Estate Fund Reported on NASDAQ under ticker symbol: GIREX
Los Angeles, CA. (July 8, 2014) Griffin Capital Corporation today announced the launch of the Griffin Institutional Access Real Estate Fund (NASDAQ: GIREX) which began reporting on NASDAQ as of June 30, 2014. The initial share price was $25.00 and reported at $25.02 as of July 7, 2014. GIREX includes several of the largest and most prestigious private institutional real estate funds in its investment portfolio. As part of the initial investment allocation of its portfolio managers, the fund invested in several private investment funds including, RREEF America II, BlackRock Granite, AEW Core Property Trust, Sentinel Real Estate Fund, Clarion Lion Properties Trust, and MEPT Edgemoor.
GIREX strategically invests in an actively-managed blend of private institutional real estate investment funds as well as a diversified set of public market real estate securities, a combination that has proven over long periods of time to provide both current income and capital appreciation, with moderate volatility and low correlation to the broader market.
The Fund has engaged two of the most prominent and established names in real estate investment management as sub-advisors to monitor and help optimize the two investment focuses of the Fund. Hewitt EnnisKnupp, an Aon Company with $4.6 trillion under advisement, will serve as the Fund’s sub-advisor for the private funds allocation, and CenterSquare Investment Management, a BNY Mellon company, will serve as sub-advisor for the public securities portion. Griffin Capital Securities, Inc. is the exclusive wholesale marketing agent for the Griffin Institutional Access Real Estate Fund.
“We are pleased to bring Griffin Institutional Access Real Estate Fund to the market,” said Dr. Randy Anderson, the Portfolio Manager of GIREX. “We believe that the combination of our public and private investments, selected with the assistance of our two industry-leading sub-advisors, is a recipe for success for many investors in today’s market,” Anderson continued. Kevin Shields, Griffin Capital’s Chairman and CEO added, “we are pleased to add this fund to our other offerings available through our independent broker-dealer partners, and believe it is a great complement to our platform.”
GIREX is a 1940 Act, closed-end interval fund that continuously offers its shares on a daily basis offering daily purchases and requires a minimum investment of $2,500 for regular accounts and $1,000 for retirement plan accounts. To provide liquidity to shareholders, GIREX will make quarterly offers to repurchase between five percent and 25 percent of its outstanding shares at net asset value.
About Griffin Capital Corporation
Griffin Capital Corporation (Griffin Capital) is a privately-owned real estate company headquartered in Los Angeles. Led by senior executives, each with more than two decades of real estate experience who have collectively closed transactions representing over $16 billion in value, Griffin Capital and affiliates have acquired or constructed over 30 million square feet of space since 1995, and currently own, manage, sponsor and/or co-sponsor an institutional-quality portfolio of approximately 27 million square feet located in 32 states and 1 million square feet located in the United Kingdom, representing approximately $5.2 billion in asset value as of June 30, 2014. Additional information about Griffin Capital is available at www.griffincapital.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Griffin Institutional Access Real Estate Fund (GIREX). This and other important information about the Fund is contained in the prospectus, which can be obtained by contacting your financial advisor or visiting www.griffincapital.com. The prospectus should be read carefully before investing.
Griffin Institutional Access Real Estate Fund Risk Considerations
GIREX is not a money market fund. Investors in GIREX should understand that the net asset value of GIREX will fluctuate, which may result in a loss of the principal amount invested.
GIREX is a newly formed entity with no significant operating history upon which prospective investors may evaluate GIREX’s potential performance.
The GIREX portfolio will be managed in a dynamic fashion and the allocation of GIREX’s assets between private real estate funds and public real estate securities will vary widely. Investments in private real estate funds will likely comprise between 50% and 95% of GIREX’s portfolio. Investments in public real estate securities will likely comprise between 5% and 50% of GIREX’s portfolio.
GIREX’s investment in private real estate funds will require it to bear a pro rata share of the vehicles’ expenses, including management and performance fees. The fees GIREX pays to invest in a private real estate fund may be higher than if the manager of the private real estate fund managed GIREX’s assets directly. The incentive fees charged by certain private real estate funds may create an incentive for its manager to make investments that are riskier and/or more speculative than those it might have made in the absence of an incentive fee. The funds are not publicly traded and therefore may not be as liquid as other types of investments.
Private real estate funds, like the other investment funds in which GIREX may invest, are subject to specific risks, depending on the nature of the vehicle and also may employ leverage such that their returns are more than one times that of their benchmark which will amplify losses suffered by GIREX when compared to unleveraged investments.
Since GIREX is non-diversified, GIREX may invest more than 5% of its total assets in the securities of one or more issuers. As a result, GIREX’s performance may be more sensitive to any single economic, business, political or regulatory occurrence than the value of shares of a diversified investment company.
No guarantee or representation is made that the investment program of GIREX will be successful, that the various trading strategies utilized or investments made by GIREX will have low correlation with each other or with the financial markets in which GIREX invests.
As an interval fund, GIREX will make quarterly offers to repurchase at least 5% and up to 25% of its outstanding shares. In the event that the number of shares tendered for repurchase exceeds these amounts, shareholders may be prevented from fully liquidating their positions in a timely manner.
Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may, without the prior written consent of Griffin Capital, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient.
GIREX is distributed by ALPS Distributors, Inc. ALPS Distributors, Inc. is not affiliated with either Griffin Capital or any of its affiliates.