Comrit Investments 1 LP, a Tel Aviv-based investment fund, has launched an unsolicited mini-tender offer for up to 420,610 shares of KBS Real Estate Investment Trust III, Inc. at $9.51 per share. The offer constitutes approximately 0.24 percent of the outstanding shares.
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 substantially below the value of the shares.
“Comrit’s offer is meant to take advantage of the illiquidity of the REIT’s shares by buying your shares at a price significantly below their fair value in order to make a significant profit,” said the REIT.
KBS REIT III’s initial offering commenced in October 2010 and closed in July 2015 after raising approximately $1.8 billion. As of September 30, 2018, the company’s portfolio was comprised of 27 office properties and one mixed-use office/retail property.