HC Government Realty Trust (HCGRT) has raised approximately $3.2 million through a Regulation A offering qualified by the SEC on Nov. 7. 2016. An additional $1 million of subscriptions are being fulfilled.
The funds allow HCGRT to buy seven properties from predecessor Holmwood Capital, LLC, bringing HCGRT’s total properties to 11 single-tenant, built/improved-to-suitunits leased by the United States of America under the General Services Administration (GSA).
Approximately 318,000 shares of common stock were sold at $10 each. The goal was 300,000.
Operating as a REIT, HCGRT intends to target an initial dividend of 5.5 per cent, or 55 cents per $10 share. Upon completion of a raise capped at $30 million it intends to apply for quotation of its common stock on the OTCQX marketplace.
“We are pleased to have quickly completed our initial capital raise, a critical first step in our long-term plan to build the HC Government Realty Trust portfolio,” HCGRT director and CEO Edwin M. Stanton said. “With a dedicated focus on building a portfolio of smaller, regional-based GSA properties, we are seeking to provide investors with an attractive high yield real estate investment vehicle; one that delivers reduced risk as a result of our government-leased assets backed by the full faith and credit obligation of the United States.”
HCGRT’s strategy is to buy and operate GSA properties in secondary or smaller markets. It has identified more than 1,300 offering between 5,000 and 50,000 rentable square feet and intends to hold at least one closing each month until the full offering has been achieved.