Comrit Investments 1 LP, a Tel Aviv-based investment fund, has extended the expiration date of its recently launched unsolicited tender offer for shares of CIM Real Estate Finance Trust, shortly after the non-traded real estate investment trust announced plans to acquire an affiliate in a merger transaction.
Comrit is offering to purchase up to 18.3 million shares of CIM Real Estate Finance Trust for $5.01 per share. The offer was extended from September 30, 2021 to October 22, 2021.
Last week, CIM Real Estate Finance Trust announced plans to acquire CIM Income NAV Inc., an affiliated non-traded REIT, in a stock-for-stock merger transaction. The transaction would create a commercial credit-focused REIT with approximately $6 billion in total enterprise value and $3.2 billion equity value, if approved by shareholders.
In December 2020, CIM Real Estate Finance Trust completed stock-for-stock merger transactions with two other affiliated non-traded REITs, Cole Office & Industrial REIT and Cole Credit Property Trust V. The post-merger net asset value per share was $7.20 as of March 31, 2021.
Comrit and its affiliates currently own approximately 1.2 million shares of CIM Real Estate Finance Trust, or approximately 0.3 percent of the outstanding shares as of August 9, 2021.
In April, Comrit completed another tender offer where it sought to purchase up to 16 million shares of the REIT for $4.50 per share, and ultimately purchased roughly 896,200 shares.
CIM Real Estate Finance Trust primarily owns and operates a portfolio of core commercial real estate assets consisting of net leased properties and a portfolio of commercial mortgage loans. The REIT launched its offering in January 2012 and raised more than $3 billion prior to closing in April 2014.
As of June 30, 2021, the REIT’s investments included a loan portfolio with 247 loans at a net book value of $1.3 billion, investments in real estate-related securities totaling $42.1 million, and a $3.7 billion property portfolio with 469 properties.