Everest REIT Investors I LLC, a private real estate investment firm, has amended the offer price in its second tender offer for up to 5.3 million shares of Black Creek Group’s Industrial Property Trust, which expires on December 10, 2019.
As reported this week, Everest completed its first unsolicited tender offer on October 10th and purchased 21,528 shares of the REIT. Everest sought to purchase up to 3.6 million shares for $9.01 per share and did not own any shares prior to the offer.
In July 2019, Black Creek Group announced plans to sell Industrial Property Trust to an affiliate of Prologis Inc. (NYSE: PLD) in an all cash merger transaction valued at nearly $4 billion. The REIT estimates that stockholders may receive approximately $12.18 per share as total consideration for their shares. Shareholders are set to vote on the merger at the company’s annual meeting on December 11, 2019.
Industrial Property Trust’s last estimated net asset value per share was $12.33 as of November 30, 2018, which is approximately 37 percent higher than Everest’s tender offer price. Shares were originally sold for $10.00 each.
The merger transaction, which is expected to close in the fourth quarter of 2019 but has an outside close date of March 31, 2020, includes 236 industrial properties totaling 37.5 million square feet that are currently 97 percent leased.
Industrial Property Trust previously sent a letter to shareholders urging them to reject the offer, stating, “Given the $9.01 per share offer price, we believe that the Everest offer represents an attempt by Everest to purchase…shares at a significant discount, resulting in a profit for Everest.”
Industrial Property Trust raised $1.8 billion in investor equity from its launch in 2014 until closing in 2017.