Griffin Capital Essential Asset REIT Inc. closed a $125 million private exempt offering of its series A cumulative perpetual convertible preferred stock.

The nontraded real estate investment trust said the closing marks the first tranche of an offering of $250 million of its perpetual preferred stock, which it expects to close in 60 days.

Holders of the series A preferred shares will receive a 6.55% initial annual distribution, and holders may opt to convert their shares into the REIT's common stock any time after five years from the issuance.

SHBNPP Global Professional Investment Type Private Real Estate Trust No. 13 (H), a South Korean trust backed by Hana Financial Investment, bought the series A preferred shares. NH Investment & Securities is the lead investor in the trust, while Shinhan BNP Paribas Asset Management is the trust asset manager.

Hana Financial was the sole book runner.