UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)
CORNERSTONE PROPERTIES, INC.
(Name of Issuer)
COMMON STOCK, NO PAR VALUE
(Title of Class of Securities)
218916104
(CUSIP Number)
ROBERT F. DOW, 2800 ONE ATLANTIC CENTER, 1201 WEST PEACHTREE STREET,
ATLANTA, GEORGIA 30309-3450
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
7/28/97
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box |_|.
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
CUSIP No. 218916104 Page 2 of 13
<TABLE>
====================================================================================================================
<C> <C>
1 Name of Reporting Person S.S. or I.R.S. Identification No. of Above Person
Hexalon Real Estate, Inc.
- --------------------------------------------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)|_|
(b)|_|
- --------------------------------------------------------------------------------------------------------------------
3 SEC Use Only
- --------------------------------------------------------------------------------------------------------------------
4 Source of Funds
00
- --------------------------------------------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(E) |_|
- --------------------------------------------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
- --------------------------------------------------------------------------------------------------------------------
7 Sole Voting Power
0
- --------------------------------------------------------------------------------------------------------------------
8 Shared Voting Power
0
- --------------------------------------------------------------------------------------------------------------------
9 Sole Dispositive Power
0
- --------------------------------------------------------------------------------------------------------------------
10 Shared Dispositive Power
0
- --------------------------------------------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
- --------------------------------------------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares |_|
- --------------------------------------------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0.0 percent
- --------------------------------------------------------------------------------------------------------------------
14 Type of Reporting Person
CO
====================================================================================================================
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE>
CUSIP No. 218916104 Page 3 of 13
<TABLE>
====================================================================================================================
<C> <C>
1 Name of Reporting Person S.S. or I.R.S. Identification No. of Above Person
HRE Finance, Inc.
- --------------------------------------------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)|_|
(b)|_|
- --------------------------------------------------------------------------------------------------------------------
3 SEC Use Only
- --------------------------------------------------------------------------------------------------------------------
4 Source of Funds
00
- --------------------------------------------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(E) |_|
- --------------------------------------------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
- --------------------------------------------------------------------------------------------------------------------
7 Sole Voting Power
4,586,210
- --------------------------------------------------------------------------------------------------------------------
8 Shared Voting Power
0
- --------------------------------------------------------------------------------------------------------------------
9 Sole Dispositive Power
4,586,210
- --------------------------------------------------------------------------------------------------------------------
10 Shared Dispositive Power
0
- --------------------------------------------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
4,586,210
- --------------------------------------------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares |_|
- --------------------------------------------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
9.4 percent
- --------------------------------------------------------------------------------------------------------------------
14 Type of Reporting Person
CO
====================================================================================================================
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE>
CUSIP No. 218916104 Page 4 of 13
ITEM 1. SECURITY AND ISSUER
This statement relates to the Common Stock, no par value, of
Cornerstone Properties, Inc., a Nevada corporation (the "Company"). The
principal executive office of the Company is located at:
126 East 56th Street
New York, NY 10022
ITEM 2. IDENTITY AND BACKGROUND
1. (a) Hexalon Real Estate, Inc., a Delaware corporation ("HRE"), is
a person filing this statement.
(b) 950 East Paces Ferry Road, Suite 2275, Atlanta, Georgia
30326-1119.
(c) Real estate investment trust. See (a) and (b) above.
(d) None.
(e) None.
(f) United States.
2. (a) HRE Finance, Inc., a Delaware corporation ("HRE Finance") is a
person filing this statement. HRE is the sole stockholder of
HRE Finance.
(b) 850 Liberty Avenue, Suite 204, Newark, Delaware 19711.
(c) Real estate investment trust. See (a) and (b) above.
(d) None.
(e) None.
(f) United States.
3. (a) - (c) Rodamco North America B.V. ("Rodamco North America") is a
Dutch private limited liability company organized pursuant to
the laws of the Netherlands. Rodamco North America owns 99% of
the Common Stock of HRE. It is a real estate investment company,
and its principal office and principal place of business are
located at Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(d) None.
(e) None.
(f) Netherlands.
<PAGE>
CUSIP No. 218916104 Page 5 of 13
4. (a)-(c) Rodamco N.V. ("Rodamco") is a Dutch public limited
liability company organized pursuant to the laws of the
Netherlands. Rodamco owns 78% of the Common Stock of Rodamco
North America. It is a real estate investment company, and its
principal office and principal place of business are located at
Coolsingel 120, NL-3011 AG, Rotterdam, The Netherlands.
(d) None.
(e) None.
(f) Netherlands.
5. (a) Mr. David S. Golden.
(b) 950 E. Paces Ferry Road, Suite 2275, Atlanta, Georgia 30326.
(c) Mr. Golden is a director of HRE and HRE Finance, President
of HRE Finance, a member of the Management Board of Rodamco
North America, and the President of CGR Advisors, a Georgia
general partnership ("CGR"). CGR's address is set forth at
(b) above.
(d) None.
(e) None.
(f) United States.
6. (a) Mr. Cecil D. Conlee.
(b) 950 E. Paces Ferry Road, Suite 2275, Atlanta, Georgia 30326.
(c) Mr. Conlee is a director of HRE, a member of the Management
Boards of Rodamco North America and Rodamco, and the
Chairman of CGR. CGR's address is set forth at (b) above.
(d) None.
(e) None.
(f) United States.
7. (a) Mr. Donald J. Puglisi
(b) 850 Liberty Avenue, Suite 204, Newark, Delaware 19711
(c) Mr. Puglisi is a director and Treasurer of HRE Finance, and
is a Professor of Finance at the University of Delaware, and
the owner of Puglisi & Associates, a company which provides
financial services to domestic and international
corporations. The address for PA is set forth in (b) above.
<PAGE>
CUSIP No. 218916104 Page 6 of 13
(d) None.
(e) None.
(f) United States.
8. (a) Mr. Coenraad J. Oort.
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(c) Mr. Oort is Chairman of the Supervisory Board of Rodamco. He
is a former member of the Management Board of ABN-AMRO Bank
(Amsterdam, The Netherlands) of Amsterdam, The Netherlands.
Rodamco's address is set forth at (b) above.
(d) None.
(e) None.
(f) Netherlands.
9. (a) Mr. Petrus A.W. Roef.
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(c) Mr. Roef is a member of the Supervisory Board of Rodamco,
and is a former Chairman of the Management Board of Gamma
Holding N.V., a Dutch textile firm, of Helmond, The
Netherlands. Rodamco's address is set forth at (b) above.
(d) None.
(e) None.
(f) Netherlands.
10. (a) Mr. Pieter Korteweg.
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(c) Mr. Korteweg is Chairman of the Management Board of Rodamco.
Rodamco's address is set forth at (b) above.
(d) None.
(e) None.
(f) Netherlands.
11. (a) Mr. Johan Kremers.
<PAGE>
CUSIP No. 218916104 Page 7 of 13
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(c) Mr. Kremers is a member of the Supervisory Board of Rodamco.
Mr. Kremers is a former Vice-Chairman and Managing Director
of the Management Board of Rodamco and Chairman of the
Supervisory Board of Rodamco North America. Rodamco's
address is set forth at (b) above.
(d) None.
(e) None.
(f) Netherlands.
12. (a) Mr. J. A. de Kreij
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(c) Mr. de Kreij is Vice Chairman and a member of the Management
Board of Rodamco, Prior to assuming this position with
Rodamco, Mr. deKreij was a Group Controller of Royal
Dutch/Shell Group. Rodamco's address is set forth at (b)
above.
(d) None.
(e) None.
(f) Netherlands.
13. (a) Mr. Eoghan M. McMillan.
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(c) Mr. McMillan is a member of the Management Board of Rodamco
and is a member of the Boards of Directors of Sun Hung Kai
Development (China) Ltd., Shangrila Asia Ltd., Vitasoy
International Holdings Ltd., and Kowloon & Canton Railway
Corporation, former Managing Partner of Arthur Andersen &
Co. in Hong Kong and China and former Chairman (on
appointment by the Government of Hong Kong) of the Hong Kong
Futures Exchange. Rodamco's address is set forth at (b)
above.
(d) None.
(e) None.
(f) United Kingdom.
14. (a) Mr. Willem Dijkema.
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
<PAGE>
CUSIP No. 218916104 Page 8 of 13
(c) Mr. Dijkema is Chief Financial Officer and a member of the
Management Board of Rodamco and is Former Managing Director
of Staal Bankiers N.V., former Treasurer of the Robeco
Group. Rodamco's address is set forth at (b) above.
(d) None.
(e) None.
(f) Netherlands.
15. (a) Mr. R.F.W. van Oordt.
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(c) Mr. van Oordt is a member of the Supervisory Board of
Rodamco. He is past Chairman of the Management Board of N.V.
Koninklijke KNP BT. Rodamco's address is set forth at (b)
above.
(d) None.
(e) None.
(f) Netherlands.
16. (a) Mr. R.B. Schermer.
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(c) Mr. Schermer is a member of the Supervisory Board of
Rodamco. He is past Chairman of the Board of Directors of
Ballast Nedam N.V. Rodamco's address is set forth at (b)
above.
(d) None.
(e) None.
(f) Netherlands.
17. (a) Mr. H.N.J. Smits.
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(c) Mr. Smits is a member of the Supervisory Board of Rodamco.
He is Chief Executive Officer of Amsterdam Schiphol.
Rodamco's address is set forth at (b) above.
(d) None.
(e) None.
<PAGE>
CUSIP No. 218916104 Page 9 of 13
(f) Netherlands.
18. (a) Mr. A.P. Timmermans.
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands. Rodamco's address is set forth at (b) above.
(c) Mr. Timmermans is a member of the Supervisory Board of
Rodamco. He is a former member of the Board of Directors of
DSM N.V.
(d) None.
(e) None.
(f) Netherlands.
19. (a) Mr. William J. Breach.
(b) 950 E. Paces Ferry Road, Suite 2275, Atlanta, Georgia 30326.
(c) Mr. Breach is Vice President of HRE, HRE Finance, and CGR.
CGR's address is set forth at (b) above.
(d) None.
(e) None.
(f) United States.
20. (a) Mr. A. David Vande Poele.
(b) c/o Puglisi & Associates, 850 Liberty Avenue, Suite 204,
Newark, Delaware 19711.
(c) Mr. Vande Poele is Vice President of HRE Finance, and is
employed by PNC Bank, Delaware, where is involved in the
sale of financial services.
(d) None.
(e) None.
(f) United States.
21. (a) Mr. Jan H. van der Meer.
(b) c/o Rodamco N.V., Coolsingel 120, NL-3011 AG, Rotterdam, The
Netherlands.
(c) Mr. van der Meer is a member of the Management Board of
Rodamco. Rodamco's address is set forth at (b) above.
<PAGE>
CUSIP No. 218916104 Page 10 of 13
(d) None.
(e) None.
(f) Netherlands.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On November 7, 1996, HRE acquired 458,621 shares (the "Shares") of the
Company's 8% Cumulative Convertible Preferred Stock, Series A, in exchange for
common stock of Frick Building, Inc. a Delaware corporation ("Frick"), owned by
HRE. Frick was merged with and into CStone-Pittsburgh Trust, a Maryland business
trust and wholly-owned subsidiary of the Company (the "Sub"), pursuant to the
terms of that certain Agreement and Plan of Merger ("Merger Agreement") dated
November 7, 1996, among the Company, the Sub, Frick, and HRE, a copy of which is
filed herewith as Exhibit 99.1.
On December 23, 1996, HRE transferred all of its interest in the Shares
to HRE Finance, its wholly-owned subsidiary.
On July 28, 1997, all of the Shares held by HRE Finance were converted
into shares of Common Stock of the Company, at a ratio of ten shares of Common
Stock for each share of Preferred Stock converted.
ITEM 4. PURPOSE OF TRANSACTION
The reporting person currently intends to hold the shares for
investment.
(a) None.
(b) See Item 3.
(c) None.
(d) Pursuant to the terms of that certain Stockholders Agreement
("Stockholder Agreement") dated as of November 7, 1996,
among the Company and HRE, a copy of which is filed herewith
as Exhibit 99.2, so long as HRE holds the Shares, HRE may
designate a director nominee, and the Company shall
recommend the election of such nominee to the holders of the
Company's common stock. HRE has designated Cecil Conlee as
its director nominee. On November 27, Cecil Conlee was
elected as a director of the Company pursuant to the
Stockholder Agreement. On December 23, 1996, the Stockholder
Agreement was amended to add HRE Finance as a party to the
Stockholder Agreement. Upon the conversion of the Preferred
Stock Shares into common stock, HRE Finance relinquished its
right under the Stockholders Agreement to appoint a director
nominee. However, pursuant to a separate non-binding letter
of understanding among the Company and HRE Finance, the
Company will continue to nominate a representative of
Rodamco North America for election to the Company's Board of
Directors and the Investment Committee thereof, for so long
as Rodamco (or its affiliates) maintains an investment in
Company stock of at least $50 million.
<PAGE>
CUSIP No. 218916104 Page 11 of 13
(e)-(j) None.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a)-(b) See Items 7-13 of the cover pages.
(c) See Item 3. No other transactions in the Company's
securities have been effected by the persons named in Item 2
above within the last sixty days.
(d) None.
(e) On December 23, 1996, Hexalon Real Estate, Inc. ("HRE")
ceased to be the beneficial owner of more than 5% of the
Company's Common Stock.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
See Item 4(d). The Stockholders Agreement includes, among other things,
(i) a restriction on the transfer of the Shares without prior written notice to
the Company; (ii) demand and piggyback registration rights for the holders of
the Shares; (iii) a requirement that the holders of the Shares execute a lock-up
agreement in the event of an underwritten public offering.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
99.1* Agreement and Plan of Merger dated November 7, 1996
99.2* Stockholders Agreement dated November 7, 1996.
99.3* Certificate of Designations, Voting Powers, Preferences and
Relative, Participating, Optional and Other Special Rights and
Qualifications, Limitations or Restrictions of 8% Cumulative
Convertible Preferred Stock, Series A of Cornerstone Properties,
Inc.
99.4 Agreement of filing persons relating to filing of joint
statement per Rule 13d-1(f).
*Previously filed.
<PAGE>
Page 12 of 13
Signature.
After reasonable inquiry each of the undersigned certifies that to the
best of his knowledge and belief the information set forth in this statement is
true, complete and correct.
HEXALON REAL ESTATE, INC.
By:William J. Breach
William J. Breach, its Vice President
HRE FINANCE, INC.
By:William J. Breach
William J. Breach, its Vice President
Page 13 of 13
EXHIBIT 99.4
The undersigned each hereby certifies and agrees that the above
Schedule 13D concerning securities issued by Cornerstone Properties, Inc. is
being filed on behalf of each of the undersigned.
HEXALON REAL ESTATE, INC.
By:William J. Breach 8/20/97
William J. Breach, its Vice President Date
HRE FINANCE, INC.
By:William J. Breach 8/20/97
William J. Breach, its Vice President Date
459653.1
