Comrit Investments 1 LP, a Tel Aviv-based investment fund, has launched an unsolicited tender offer to purchase up to $4 million of Class AA shares of Griffin Realty Trust Inc., a publicly registered non-traded real estate investment trust formerly known as Griffin Capital Essential Asset REIT. The offer expires on September 30, 2021.
Comrit is offering to pay $6.91 per share in cash, which is 24 percent less than the REIT’s most recent net asset value per share of $9.04 as of June 30, 2021.
Acccording to a letter sent to shareholders, Griffin Realty Trust is remaining neutral and not making any recommendation on whether its shareholders should accept or decline Comrit’s offer.
The REIT noted that the ability of a stockholder to redeem its shares is “very limited.”
Currently, Class AA shareholders can only redeem their shares at NAV through the REIT’s share redemption plan, which has a quarterly cap on total redemptions and is also limited to a stockholder’s death, qualifying disability, or determination of incompetence.
“In light of the current and ongoing illiquidity available to [Griffin Realty Trust] stockholders, the board has decided, as a matter of policy, that it will adopt a neutral stance as it relates to all tender offers,” the REIT stated in the letter.
Griffin Realty Trust owns and operates a portfolio of corporate office and industrial properties that are primarily net leased to single tenants that the company deems creditworthy. The REIT’s portfolio consists of 121 properties (144 buildings) totaling 29.2 million square feet. Major tenants include Amazon.com, General Electric, and Keurig Dr. Pepper, among others.