American Realty Capital New York City REIT, a non-traded real estate investment trust sponsored by AR Global, has amended its self-tender offer in the latest move to deter Tel Aviv-based investment fund Comrit Investments 1 LP from purchasing its shares.
The REIT is now offering to purchase 140,000 shares at $17.03 each after previously offering to purchase 1.6 million shares at $17.03 each, as reported by The DI Wire.
The REIT and Comrit have bid up the share price in recent weeks beginning with Comrit’s initial unsolicited tender offer to purchase up to 1.6 million shares of ARC NYC REIT at $14.68 each.
ARC NYC REIT, in response to Comrit’s offer, launched a defensive counter tender offer to purchase up to 1.9 million shares for $15.50 each. Comrit later downsized its offer to 124,844 shares at $16.02 each.
The REIT’s latest offer adds a condition that the offer may be terminated if the Comrit offer is terminated or withdrawn prior to the purchase of any shares in the company’s offer. Comrit and its affiliates currently own approximately 45,000 shares of ARC NYC REIT common stock.
ARC NYC REIT has an estimated a net asset value per share of $20.26 as of June 30, 2017. Shares were originally sold for $25.00 each.
The ARC NYC REIT board recommends that stockholders not tender their shares in either offer.
In other company news, ARC NYC REIT suspended distributions earlier this month in an effort to better position the company for future growth and a successful future liquidity event.
American Realty Capital New York City REIT invests in properties located in the five boroughs of New York City, with a focus on Manhattan. The company closed its offering in May 2015 and raised a total of $772 million in investor equity, as of the third quarter of 2017, and owns six properties with an investment cost of $725 million, according to Summit Investment Research.