Comrit Investments 1 LP, Tel Aviv-based investment fund, has extended the deadline for its unsolicited tender offer to purchase 2.3 million shares of Benefit Street Partners Realty Trust for $11.02 per share. The offer previously expired on May 31, 2021 and has extended to June 30, 2021.
Benefit Street Partners Realty Trust sent a letter to shareholders recommending that they reject the offer, since it believes that Comrit is offering to purchase the shares at a “significant discount to fair value in order to make a significant profit.”
Benefit Street Partners Realty Trust, a publicly registered non-traded real estate investment trust, has a net asset value per share of $17.88, as of September 30, 2020, and a GAAP book value per share at $17.94 as of December 31, 2020.
In its shareholder letter, the REIT indicated that in January 2021 it used available distribution reinvestment plan proceeds to repurchase approximately 506,024 shares from stockholders based on the most recent NAV per share of $17.88. In July 2021, the REIT expects to use available DRIP proceeds to repurchase shares from stockholders who wish to sell at the lesser of its GAAP book value or estimated net asset value per share as of September 30, 2020. The company indicated that it does not intend to fulfill repurchase requests in amounts that exceed available DRIP proceeds.
Combined with its other tender offers, Comrit now owns approximately 296,500 shares of Benefit Street Partners Realty Trust, or approximately 0.7 percent of the total outstanding common stock as of February 28, 2021.
The latest offer constitutes approximately 5.2 percent of the outstanding shares, and if all shares sought by Comrit are tendered, it would pay roughly $25.3 million.
Benefit Street Partners Realty Trust originates, acquires and manages a portfolio of commercial real estate debt investments secured by properties located within and outside the United States.
The company commenced operations in May 2013, and as of the fourth quarter of 2020, had approximately $3 billion of assets under management. Formerly known as Realty Finance Trust and managed by AR Global, Benefit Street took over as the company’s new advisor at the end of September 2016. The advisor is a wholly-owned subsidiary of Franklin Resources Inc.