Executive stock purchase plans commence
ATLANTA (May 14, 2014) – American Healthcare Investors and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT III, Inc., announced today that the REIT reached its minimum offering of $2 million in subscriptions on May 12. As a result, all initial subscribers have been admitted as stockholders of Griffin-American Healthcare REIT III and proceeds from initial subscriptions that had been placed in escrow until the minimum offering was reached have been released by the escrow agent, provided that residents of Washington and Pennsylvania will not be admitted until aggregate subscriptions exceed $20 million and $87.5 million, respectively, in shares sold. These funds are now available to the REIT for the acquisition of real estate assets and other purposes.
Upon receipt of these proceeds, Griffin-American Healthcare REIT III entered into agreements to acquire three medical office buildings located in Greater Atlanta for an aggregate purchase price of approximately $12.1 million. The three buildings include the 16,315-square-foot Country Club Medical Office Building in Stockbridge, the 37,500-square-foot Acworth Medical Complex in Acworth, and the nearly 19,000-square-foot DeKalb Professional Center in Lithonia. The acquisitions are subject to customary closing conditions and the satisfaction of other requirements as detailed in the agreements.
“Each of these medical office buildings is located near, or closely affiliated with, a large hospital system in the heart of a thriving community with growing demand for healthcare services,” said Dan Prosky, a principal of American Healthcare Investors and president and chief operating officer of Griffin-American Healthcare REIT III. “These are among the key traits we seek when evaluating an asset for acquisition, and make these three Atlanta-area medical office buildings ideal acquisitions for Griffin-American Healthcare REIT III.”
As a result of Griffin-American Healthcare REIT III reaching its minimum offering, investments pursuant to the irrevocable stock purchase plans entered into by the REIT’s officers will commence. Under the terms of these plans, chairman and CEO Jeff Hanson, executive vice president and general counsel Mathieu Streiff and Prosky each invest 100 percent of the after-tax cash compensation (salary and annual bonus) they receive as employees of American Healthcare Investors, the REIT’s co-sponsor, directly into shares of Griffin-American Healthcare REIT III. Hanson, Prosky and Streiff were the initial investors in the REIT, having invested an aggregate total of $750,000 upon the REIT being declared effective by the U.S. Securities and Exchange Commission. They are joined by the five division heads of American Healthcare Investors, who have each entered into stock purchase plans wherein they each invest between 10 percent and 15 percent of their after-tax salary into shares of the REIT.
“We share a fundamental belief that the executives responsible for an investment offering should make considerable personal monetary investments that align their interests with those of the stockholders,” said Hanson. “As such, we are pleased to enter into these stock purchase programs and to stand shoulder-to-shoulder with the stockholders we serve.”
The plans, as disclosed in a filing by Griffin-American Healthcare REIT III with the U.S. Securities and Exchange Commission on March 6, 2014, will remain in effect until Griffin-American Healthcare REIT III closes its equity raise or the end of 2014, as the plans must be renewed on an annual basis. All of the personnel who have entered into the stock purchase plans have expressed their intention to renew the plans on an annual basis until the close of the offering.
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