Comrit Investments 1 LP, a Tel Aviv-based investment fund, has launched an unsolicited tender offer for up to 37 million shares of InvenTrust Properties Corp. at $1.83 each. The offer, which constitutes approximately 5.08 percent of the outstanding shares, expires on December 27, 2018.
InvenTrust, a publicly registered non-traded real estate investment trust formerly known as Inland American Real Estate Trust, had an estimated net asset value per share of $3.14 as of May 9, 2018.
Comrit and its affiliates currently own approximately 420,000 shares of InvenTrust, or less than 0.1 percent of the common stock outstanding. If all shares in the offer are tendered, Comrit would pay a total of $67.7 million, which it intends to fund out of its existing capital and assets.
In a letter to shareholders, the REIT’s board recommended that they reject Comrit’s latest offering because the board believes that “the offer price is less than the current and potential long-term value of the shares of the company.”
According to InvenTrust, Comrit states that it has applied a discount to the estimated per share value with the intention of making a profit.
InvenTrust Properties invests in open air retail centers in growth markets. The company’s offering was declared effective in August 2005 and closed in April 2009 after raising $8.4 billion, according to Summit Investment Research. The company became a self-managed REIT in 2014 and oversees a $3.7 billion portfolio of 63 retail properties, as of the second quarter of 2018.