Everest Financial has launched a tender offer to purchase up to 3.6 million shares of Resource Real Estate Opportunity REIT, a publicly registered non-traded real estate investment trust, for $7.00 per share. The offer expires on November 16, 2018.
The Everest Financial offering price is approximately 35 percent lower than Resource Real Estate Opportunity Fund’s most recent estimated NAV per share of $10.80. Shares of the REIT originally sold for $10.00.
Everest Financial does not currently own any shares of the REIT, and if all shares in the current offer are tendered, Everest will pay approximately $25.2 million and own approximately 5.1 percent of the outstanding shares.
Resource Real Estate Opportunity REIT launched its initial offering in June 2010 and raised more than $633 million in investor equity before its closing in December 2013, according to Summit Investment Research. As of the second quarter 2018, the company’s portfolio was comprised of 32 investments purchased for more than $1.2 billion. The company continues to raise capital through its distribution reinvestment plan.