The board of Industrial Property Trust, a publicly registered non-traded real estate investment trust sponsored by Black Creek Group LLC, is urging shareholders to reject the unsolicited tender offer launched by Everest REIT Investors I LLC.
Everest, a private real estate investment firm, is offering to pay $9.01 per share for up to 3.6 million shares of the non-traded REIT.
Earlier this month, Everest terminated a similar tender offer for Industrial Property Trust shares that had an offer price of $9.00 each. The reason for the cancelation was not disclosed, and Everest does not currently own any shares of the REIT.
“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…,” Industrial Property Trust stated in a letter to shareholders. “Everest even acknowledges that its offer price was established based on Everest’s objectives and not based on what is in the best financial interest of…company stockholders.”
Black Creek Group recently 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 currently 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.
Industrial Property Trust raised $1.8 billion in investor equity from its launch in 2014 until closing in 2017.