IG Holdings Inc. and its affiliates have offered to purchase up to 44.1 million shares of Highlands REIT common stock for $0.17 per share. The offer, which constitutes approximately 5.10 percent of the outstanding shares, expires on April 24th. If all shares are tendered, IG Holdings will pay a total of $7.5 million.
Highlands REIT is a non-traded real estate investment trust that was spun-off from InvenTrust Properties Corp. (formerly Inland American Real Estate Trust) in April 2016.
Earlier this year, the board of Highlands REIT approved an estimated per share net asset value of $0.35 per share, as of December 31, 2016. The IG Holdings tender offer price of $0.17 per share is a 51.4 percent discount to the REIT’s NAV.
Highlands had approximately 170,000 holders of record owning a total 864.9 million shares, as of November 2, 2016. IG Holdings and its affiliates currently own 1.9 million shares of Highlands REIT.
If shareholders choose to tender their shares, they will be charged a $100 transfer fee.
IG Holdings is controlled by Ira Gaines, who serves as its sole director and holds all executive officer positions. In 1992, he founded Peachtree Partners, a firm focused on investments in distressed assets.
Highlands REIT is a non-traded real estate investment trust that oversees an 18-property portfolio of office, industrial, and retail assets, correctional facilities, and unimproved land.