CMG Partners LLC and its affiliates have launched an unsolicited tender offer to purchase up to 500,000 Class E shares of Griffin Realty Trust Inc., a publicly registered non-traded real estate investment trust formerly known as Griffin Capital Essential Asset REIT, for $3.76 per share in cash. The offer expires on October 4, 2022.
Griffin Realty Trust remains neutral and makes no recommendation on whether shareholders should accept or decline the CMG offer, according to a letter to shareholders filed with the SEC on Friday.
The CMG offer price of $3.76 per share is approximately 49 percent less than the most recently published NAV for Class E shares of $7.43 as of June 30, 2022.
Class E shareholders may not redeem their shares through the REIT’s share redemption plan except in connection with a stockholder’s death, qualifying disability or determination of incompetence or incapacitation. There is a quarterly cap of $5 million on total redemptions, and the next redemption date is September 30, 2022.
Last week, Griffin Realty Trust sold a majority interest in a 41-property office portfolio, consisting of 53 buildings and one land parcel, valued at $1.13 billion. The move was part of the REIT’s “strategic monetization process” that was announced in early August, which will involve a separation of the REIT by spinning off a new public company that will own a portfolio of primarily industrial assets, as well as certain office assets, and listing that company’s shares on a national exchange.
The remaining portfolio, comprised primarily of office assets, will be sold over time, with the net proceeds distributed to stockholders. Once these remaining assets have been sold, the company intends “to fully liquidate and cease operations.”
Griffin Realty Trust is an internally managed non-traded REIT that owns and operates a portfolio of office and industrial properties that are primarily net leased to single tenants that the company has determined to be creditworthy. The REIT’s portfolio currently includes 80 wholly owned office and industrial properties (91 buildings), totaling 21.6 million in rentable square feet, located in 24 states, as well as an equity interest in a joint venture that owns 41 office properties.