Everest REIT Investors I LLC, a private real estate investment firm, has launched a tender offer to purchase shares of Carey Watermark Investors Inc., a publicly registered non-traded real estate investment trust managed by W.P. Carey Inc. (NYSE: WPC). The offer expires on March 29, 2019.
Everest is offering to purchase up to 7.02 million shares of common stock, or roughly 5 percent of the outstanding shares, for $7.50 per share. Carey Watermark shares originally sold for $10.00 each and have an estimated net asset value of $10.41 as of December 31, 2017.
Everest and its subsidiaries do not currently own any shares of the REIT and would pay nearly $52.7 million if all shares sought in the current offer are tendered.
Carey Watermark Investors launched in September 2010 and closed in December 2014 after raising approximately $1.1 billion in investor equity, according to Summit Investment Research. The company’s portfolio was comprised of 27 properties with a total investment cost of nearly $2.3 billion, as of the third quarter of 2018.