Comrit Investments 1 LP, a Tel Aviv-based investment fund, has terminated its unsolicited tender offer to purchase up to 16 million shares of CIM Real Estate Finance Trust, a publicly registered non-listed real estate investment trust formerly known as Cole Credit Property Trust IV, for $5.27 per share. The offer was scheduled to expire on April 30, 2020.
The tender offer was subject to various terms and conditions and could be terminated due to a “general suspension of trading” on a national securities exchange. Although Comrit did not define a “general suspension of trading” in its offer, the company determined that such a condition was triggered by the two mandatory trading halts imposed by the New York Stock Exchange on March 9, 2020 and March 16, 2020.
On Tuesday, Comrit canceled another unsolicited tender offer for shares of AR Global’s Healthcare Trust for the same reason.
No consideration will be paid to shareholders who have tendered their shares, and any shares previously tendered will be “promptly” returned to shareholders, Comrit said.
Earlier this month, the board of CIM Real Estate Finance Trust sent a letter to shareholders recommending that they reject Comrit’s offer.
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.