Everest REIT Investors I LLC, a private real estate investment firm, has extended the expiration date of its unsolicited tender offer for Class T shares of Black Creek Group’s Industrial Property Trust until October 10, 2019. The offer was previously scheduled to expire on September 30, 2019.
Everest is offering to purchase up to 3.6 million shares of the non-traded REIT for $9.01 per share, and based on a recent statement made by the company, approximately 13,654 shares have been tendered to date. Everest did not own any REIT shares prior to the tender offer.
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.”
In July 2019, Black Creek Group announced that it agreed to sell Industrial Property Trust to an affiliate of Prologis Inc. (NYSE: PLD) in an all cash merger transaction valued at approximately $3.99 billion. The REIT estimates that stockholders may receive approximately $12.18 per share as total consideration for their shares.
Industrial Property Trust’s last estimated net asset value per share was $12.33 as of November 30, 2018, which is 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 raised $1.8 billion in investor equity from its launch in 2014 until closing in 2017.