Mackenzie Increases Landmark Tender Offer to $7 Per Share

Mackenzie Increases Landmark Tender Offer to $7 Per Share

MacKenzie Realty Capital Inc., a non-traded business development company, increased its tender offer to purchase up to 1.3 million shares of Landmark Apartment Trust common stock. The amended offer of $7.00 per share is a 58 percent increase from its previous offer in October of $5.10 per share. The company also extended the offer’s expiration date from November 18th to December 11th. 

Landmark is recommending that its shareholders reject the offer in favor of the recently announced merger with Monument Partners which is expected to close in early 2016. Upon shareholder approval, Landmark would become a privately held company.

Launched in 2006 as NNN Apartment REIT, Landmark Apartment Trust Inc. is a non-traded real estate investment trust that owns approximately 24,000 apartment units throughout the southern United States. Its original stockholders paid $10 per share of the non-traded REIT.

As reported by The DI Wire, Landmark recently announced that it entered into a $1.9 billion merger agreement to be acquired by Monument Partners LLC, an affiliate of Starwood Capital Group and Milestone Apartments Real Estate Investment Trust. The Landmark board-approved merger is an all-cash transaction that will net investors $8.17 per share of common stock. 

Mackenzie sent a letter to Landmark shareholders on Tuesday to inform them of the increased tender offer of $7.00 per share. The company asked shareholders to “cash out now, close out the investment this year, and eliminate the risk that the merger does not close as expected.”

The DI Wire reported on Mackenzie’s original offer last month and noted that the company and its affiliates currently own 253,537.96 Landmark shares, or 0.98 percent of the outstanding shares. The 1.3 million shares constitute 5.04 percent of the outstanding shares. 

As of November 18th, 14,377.519 shares were tendered and not withdrawn by Landmark’s stockholders.