KBS Real Estate Investment Trust II Inc., a publicly registered non-traded real estate investment trust, reported that CMG Partners made a tender offer to purchase 9.75 million shares of common stock from its investors for $3.30 per share. The offer expires on July 13th.
The REIT had 47,800 holders of record owning a total of 189.4 million shares as of March 14, 2016. CMG and its affiliates currently own 751,748 shares, or 0.4 percent of those outstanding. The 9.75 million shares in the current offer constitute 5.15 percent of the outstanding shares, and would cost CMG $32.2 million if all shares are tendered.
According to CMG, the earliest investors who participated in KBS REIT II’s primary stock offering have received a total of $9.03 per share through September 21, 2015, and $7.36 per share for shareholders who were the last to invest in the offering.
In a letter to shareholders, CMG noted that for those that accept the tender offer, they can cash out with total distributions and proceeds in excess of their initial investment.
KBS REIT II’s share repurchase program, which was suspended in June 2014, purchased shares for $5.79 each. The REIT, which estimates that its net asset value is $5.62 per share, previously disclosed that it intends to continue to strategically sell assets in its portfolio and has engaged a third party advisory firm to provide assistance concerning strategic alternatives.
The REIT’s portfolio consists of 11 real estate properties and one real estate loan receivable.
In other KBS REIT II news, The DI Wire reported last week that the company sold a San Jose office building to Griffin Capital Essential Asset REIT II for $44 million.