AR Capital’s American Finance Trust Urges Shareholders to Reject Mackenzie Tender Offer
American Finance Trust Inc. (formerly known as American Realty Capital Trust V), a publicly registered non-traded real estate investment trust sponsored by AR Capital, announced that its board of directors recommended that its shareholders reject the tender offer made by Mackenzie Realty Capital.
As reported by The DI Wire earlier this month, MacKenzie Realty Capital Inc., a non-traded business development company, made a tender offer for up to 150,000 shares of AFIN common stock for $16.00 each. The offer expires on April 29, 2016.
American Finance Trust believes that the tender offer in not in the best interest of its shareholders, stating that “[these types of offers] are often an attempt to profit at [shareholder] expense.”
The tender offer price of $16.00 per share is 33 percent less than the company’s most recent NAV estimate of $24.17 per share.
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’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.
The board terminated the offering following a series of scandals surrounding AR Capital, its sponsor, and Realty Capital Securities, its dealer manager, which led to the termination of all AR Capital-sponsored investment programs and an agreement by RCS to terminate its business.
