Home Alts News Israeli Investment Fund Offers $8.50 Per Share of Phillips Edison Grocery Center...

Israeli Investment Fund Offers $8.50 Per Share of Phillips Edison Grocery Center REIT

Comrit Investments 1, a Tel Aviv-based real estate investment fund, has issued an unsolicited mini-tender offer to purchase up to 1 million shares of Phillips Edison Grocery Center REIT I common stock for $8.50 per share.

Phillips Edison Grocery Center REIT I, a publicly registered non-traded real estate investment trust, had 40,374 holders of record owning a total of 184.3 million shares of common stock outstanding, according to the offer documents. The offer equals 0.54 of the outstanding shares and expires on December 30th. Comrit will pay $8.5 million if all shares are tendered.

In a letter to shareholders, the Phillips Edison REIT board said that they believe that the offer price is “significantly less” than the current and potential long-term value of the shares. In April, the board approved an estimated $10.20 per share net asset value. Shares were originally sold for $10.00 each.

Comrit Investments 1, which has invested approximately $100 million in non-traded REITs in the United States, does not currently own any shares of Phillips Edison Grocery Center REIT.

Phillips Edison Grocery Center REIT I focuses on investing in grocery-anchored neighborhood shopping centers that have a mix of national and regional retailers selling necessity-based goods and service. The REIT, which went effective in August 2010 and closed in February 2014 after raising $1.8 billion in investor equity, owns a portfolio of 150 properties valued at $2.5 billion, based on investment cost, according to Summit Investment Research.

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