Comrit Investments 1 LP, a Tel Aviv-based investment fund, has amended its unsolicited tender offer for shares of Cole Office & Industrial REIT Inc. (CCIT II).
In its original tender offer, which was scheduled to expire on June 26th, Comrit offered to purchase up to 3.4 million shares of Class A and Class T common stock for $8.52 each.
Comrit now seeks to purchase up to approximately 469,500 shares, consisting of 448,600 Class A shares and 20,900 Class T shares, in an offer that expires on July 27th. The offer price remains the same.
Cole Office & Industrial REIT recently declared a $10.58 per share net asset value for its Class A and Class T shares as of December 31, 2017, which is nearly 20 percent more than the Comrit offer price.
The REIT’s board previously recommended that shareholders reject the Comrit offer and not tender their shares. “We believe that the offer is an opportunistic attempt by Comrit to purchase shares at a discounted price substantially below the actual value of the shares,” the board said in a letter to REIT shareholders at the end of May.
Comrit will pay approximately $4 million if all shares in the current offer are purchased. The company and its affiliates currently own approximately 610,500 shares of CCIT II Class A and Class T common stock, or approximately 0.9 percent of the total shares outstanding.
Cole Office and Industrial REIT commenced operations in September 2013 and invests primarily in single-tenant necessity office and industrial properties that are leased to creditworthy tenants under long-term, net leases.
The company closed its primary offering in September 2016 after raising $672 million in investor equity, according to Summit Investment Research. The company’s $1.2 billion portfolio is comprised of 36 properties totaling 11.4 million rentable square feet. Cole Office and Industrial REIT is operated by CCO Group LLC, a subsidiary of CIM Group.