Coastal Realty Business (Coastal), an affiliate of real estate investment management business, Mackenzie Capital Management, has issued a tender offer to Dividend Capital Diversified Property Trust (DPF) shareholders.
DPF, a public reporting, daily NAV vehicle, has cautioned shareholders not to act on the offer until its board of directors has made a recommendation.
The unsolicited bid has Coastal offering to purchase up to 8,400,000 shares of Class E common stock at a price of $3.50 per share. Yesterday, DPF’s net asset value per share for Class E stock was listed at $7.08.
As of February 28, 2014, DPF had 31,000 holders of record who as of August 5, 2014, owned an aggregate of 166,389,665 shares.
Currently, Coastal and its affiliates beneficially own 145,895.90 shares, or 0.09% of DPF’s outstanding shares. If all the shares Coastal seeks are tendered, it would pay an aggregate purchase price of $29,400,000 and would own 5.05% of outstanding Class E shares.
In a statement to shareholders, the Colorado-based DPF wrote “Consistent with its fiduciary duties, DPF’s Board of Directors will consider the tender offer and advise DPF shareholders of its recommendation.”
With the offer set to expire on November 7, 2014, the DPF board of directors will make its recommendation no later than October 7, 2014. In addition to being made available to shareholders, DPF’s recommendation will be filed with the SEC in a solicitation/recommendation statement on Schedule 14D-9.
DPF invests in a diversified portfolio of commercial real estate. As of June 30, 2014, the company owned 68 properties across 24 geographical markets, totaling 11.7 million square feet.