CNL Growth Properties Receives an Increased Tender Offer from CMG, Sells JV Multifamily Property

Shareholders of CNL Growth Properties Inc., a publicly registered non-traded real estate investment trust, received an amended tender offer from CMG Partners LLC and its affiliates to purchase up to 1.5 million shares of the REIT’s common stock. CMG increased its offer price from $4.00 to $5.25 per share.

As reported by The DI Wire, CMG originally launched an unsolicited offer on November 24th to purchase up to 1.5 million shares at a price of $5.00 per share in cash. On the same date, the REIT announced a special distribution of at least $1.00 per share and a maximum of $1.70 per share dependent on whether a pending sale closes before December 31, 2015. Following the announcement, CMG amended their offer and reduced the offer price to $4.00 per share.

The price increase is the result of a competing offer from Everest REIT Investors which launched an unsolicited offer earlier this month to purchase up to 1.13 million shares of common stock at a price of $5.00 per share in cash.

In other CNL Growth Properties news, the REIT and a joint venture with Crescent sold Crescent Cool Springs, a multifamily property in the Nashville suburb of Franklin, Tennessee, to SHLP Acquisition LLC for $60 million. The DI Wire reported on the deal in September when the sales agreement was signed. CNL Growth Properties received approximately $14.9 million from the sale after repayment of approximately $27.9 million of debt, closing costs, reserves, and distributions to Crescent.