Israel-Based Investment Fund Increases Purchase Price in ARC NYC REIT Tender Offer
Comrit Investments 1 LP, a private real estate investment fund based in Tel Aviv, Israel, has amended its unsolicited tender offer for shares of American Realty Capital New York City REIT.
Comrit Investments 1 LP, a private real estate investment fund based in Tel Aviv, Israel, has amended its unsolicited tender offer for shares of American Realty Capital New York City REIT, a non-traded real estate investment trust sponsored by AR Global. Comrit increased the purchase price to $16.02 per share and extended the expiration date to March 20, 2018.
Comrit originally offered to purchase up to 1.6 million shares of ARC NYC REIT common stock for $14.68 each. The REIT, in response to Comrit’s offer, launched a counter tender offer last week to purchase up to 1.9 million shares for $15.50 each. Both offers were set to expire on March 6, 2018.
In the latest offer, Comrit would pay $25.6 million if all 1.6 million shares are tendered and would own approximately 5.12 percent of the outstanding shares. Comrit and its affiliates currently own approximately 45,000 shares of ARC NYC REIT common stock.
ARC NYC REIT has an estimated a net asset value per share of $20.26 as of June 30, 2017. Shares were originally sold for $25.00 each.
The ARC NYC REIT board recommends that stockholders not tender their shares in either offer.
In other ARC NYC REIT news, the company reached a settlement agreement with dissident shareholder Cove Partners III regarding a contested charter amendment vote at last year’s annual meeting of shareholders.
American Realty Capital New York City REIT invests in properties located in the five boroughs of New York City, with a focus on Manhattan. The company closed its offering in May 2015 and raised a total of $772 million in investor equity, as of the third quarter of 2017, and owns six properties with an investment cost of $725 million, according to Summit Investment Research.
