Carter Validus Mission Critical REIT II Inc., a publicly registered non-traded real estate investment trust, is urging investors to reject an unsolicited tender offer made by MacKenzie Realty Capital Inc.
MacKenzie is offering to purchase up to one million shares of REIT common stock for $4.05 per share in an offer that expires on June 8, 2020. The REIT’s most recent NAV per share is $8.65 as of October 31, 2019, approximately 113.6 percent higher than the MacKenzie offer price.
“Given the $4.05 per share offer price, we believe that the MacKenzie offer represents an attempt by MacKenzie to exploit the current economic turmoil caused by the COVID-19 pandemic and purchase shares at a significant discount…,” the company said in a letter to shareholders.
Carter Validus REIT II completed its merger with affiliated REIT, Carter Validus Mission Critical REIT in October 2019.
Earlier this year, The DI Wire reported that Carter Validus REIT II reached its 1.25 percent share repurchase limit for the first quarter of 2020 and was not able to process all repurchase requests.
MacKenzie and its affiliates currently own approximately 171,730 shares of Carter Validus REIT II, or nearly 0.08 percent of the outstanding shares.
Carter Validus Mission Critical REIT II invests in data centers and healthcare facilities, and as of December 31, 2019, the company owned a $2.8 billion portfolio of 152 real estate properties. The company raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014, and its follow-on offering closed in November 2018 and raised $129.3 million.