Comrit Launches Unsolicited Tender Offer for Shares of CIM Real Estate Finance Trust
Comrit Investments 1 LP, a Tel Aviv-based investment fund, has launched an unsolicited tender offer to purchase up to 16 million shares of CIM Real Estate Finance Trust for $5.27 per share.
Comrit Investments 1 LP, a Tel Aviv-based investment fund, has launched an unsolicited tender offer to purchase up to 16 million shares of CIM Real Estate Finance Trust for $5.27 per share. The offer expires on April 30, 2020.
CIM Real Estate Finance Trust Inc., a non-traded real estate investment trust formerly known as Cole Credit Property Trust IV, has a net asset value per share of $8.65, as of December 31, 2018.
Comrit and its affiliates currently own approximately 241,600 shares of the REIT’s common stock, or less than 0.1 percent of the shares.
Last year, CIM Real Estate Finance Trust announced plans to transition to a mortgage REIT, including amending its charter to help position it for a potential listing on a national securities exchange, re-naming the company, and amending its management agreement to better align with other publicly listed mortgage REITs.
In December 2019, CIM Real Estate Finance Trust sold 411 single-tenant properties for nearly $1.04 billion to Realty Income Corporation (NYSE: O), representing the first tranche of a 452-property sale to the public REIT. The total transaction is valued at approximately $1.25 billion and includes the assumption by Realty Income of existing mortgage debt totaling approximately $131 million.
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. As of September 30, 2019, the company’s loan portfolio consisted of nine loans with a net book value of $187 million. The REIT launched its offering in January 2012 and raised more than $3 billion prior to closing in April 2014. Since its last quarterly financial filing for September 30, 2019, the company owned 849 properties totaling 25.1 million rentable square feet of commercial space located in 45 states.
