Comrit Investments 1 LP, Tel Aviv-based investment fund, has extended the expiration date of its unsolicited tender offer for shares of Benefit Street Partners Realty Trust from November 9, 2018 to November 27, 2018.
Comrit launched its tender offer last month and is offering to purchase up to 1.8 million shares of the non-traded REIT for $13.08 per share, which constitutes approximately 5.3 percent of the outstanding shares. The REIT’s board unanimously recommends that stockholders reject the offer.
Benefit Street Partners Realty Trust, formerly known as Realty Finance Trust, was previously managed by AR Global before Benefit Street Partners LLC took over as its new advisor at the end of September 2016.
The $13.08 offer price is 31.2 percent less than the REIT’s net asset value per share of $19.02. Comrit and its affiliates already own approximately 138,000 shares and would pay up to $23.5 million if all shares in the current offer are tendered.
“The board of directors believes that the offer price represents an opportunistic attempt by the bidder to purchase shares at an unreasonably low price and make a profit and, as a result, deprive the stockholders who tender shares of the potential opportunity to realize the long-term value of their investment in the company,” the company said in a letter to shareholders.
Benefit Street Partners Realty Trust focuses on commercial real estate debt investments secured by income-producing properties and targets loans and securities – diversified by duration, geographic location, property type, ownership, and tenancy. The offering was declared effective in February 2013 and raised $786 million in investor equity before closing in January 2016. As of June 30, 2018, the company’s debt portfolio consisted of 94 loans totaling $1.9 billion, according to Summit Investment Research.