Everest REIT Investors I LLC, a private real estate investment firm, has launched a tender offer to buy $8.325 million worth of shares of Hartman Short Term Income Properties XX, Inc. Everest is seeking to purchase up to 925,000 shares for $9.00 each in its offer that expires on Jan. 3, 2020.
This unsolicited tender offer was made on Nov. 18, 2019. Hartman Short Term Income Properties XX’s last estimated net asset value per share was $12.61, which is 40.11 percent higher than Everest’s tender offer price. Shares were originally sold for $10.00 each. Hartman currently pays an annualized distribution of 7 percent.
As reported in The DI Wire, the Hartman board of directors proposed a merger of three Hartman programs, Hartman Income REIT, Inc (HI-REIT), Hartman Short Term Income Properties XIX, Inc. (Hartman XIX) and Hartman Short Term Income Properties XX, Inc. (Hartman XX) in July 2017.
Hartman has been working to finalize the merger of these entities through the Securities and Exchange Commission. This transition will create a combined entity with an estimated market cap of approximately $750 million as of December 31, 2018.
Hartman has suspended its share redemption program until the pending merger is complete.
Hartman Short Term Income Properties XX portfolio consists of 43 commercial properties comprising approximately 6.66 million square feet plus three pad sites, all located in Texas, as of June 30, 2019.