MacKenzie Offers $16.00 Per Share of ARC’s American Finance Trust
MacKenzie Realty Capital Inc., a non-traded business development company, made a tender offer for up to 150,000 shares of common stock in American Finance Trust Inc. for $16.00. The offer expires on April 29, 2016.
American Finance Trust, a publicly registered non-traded real estate investment trust sponsored by AR Capital and formerly known as American Realty Capital Trust V, has 33,308 holders of record owning a total of 66.5 million shares.
MacKenzie does not currently own any interest in the REIT and would pay $2.4 million if all 150,000 shares are tendered. The tender offer equals 0.23 percent of the outstanding shares.
American Finance Trust shares were originally sold to investors for $25.00 each, prior to the close of the offering in October 2013. The REIT’s board of directors approved the most recent NAV of $24.17 per share in May 2015.
MacKenzie notified American Finance Trust investors about the purchase offer, and said that “[The REIT] announced that it will no longer pursue a listing of its shares… and it has not said when or if it might liquidate or list.”
As reported by The DI Wire, American Finance Trust previously announced its intention to list on the New York Stock Exchange under the symbol “AFIN” during the third quarter of 2015. In September 2015, the company announced that “in light of market conditions, it would discontinue listing until market conditions were more favorable for a successful liquidity event.”
Mackenzie also stated that, “While American Finance Trust has adopted a new share repurchase plan, it did not repurchase all shares that requested repurchase in the most recent 6-month period, and it is limited in scope. [The REIT] won’t make further repurchases until July, if at all. The funds for the new program will come from the dividend reinvestment program, which has not yet been declared effective by the SEC, so any future repurchases are uncertain.”
American Finance Trust’s portfolio consists of 463 office, retail and distribution properties totaling 13.1 million square feet with an aggregate purchase price of $2.2 billion. The properties are 100 percent leased to 43 tenants.
MacKenzie Capital Management LP, a real estate investment management business based in Moraga, CA, is the sponsor of MacKenzie Realty Capital and has specialized in the area of discounted real estate securities and asset management since its formation in 1982.
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