MacKenzie Realty Capital Inc., a non-traded business development company, has launched an unsolicited tender offer for shares of CNL Healthcare Properties Inc., a non-traded real estate investment trust. The offer expires on December 14, 2018.
MacKenzie is offering to purchase up to 8.75 million shares of CNL Healthcare for $7.75 each, approximately 25 percent less that the REIT’s most recent net asset value per share of $10.32 as of December 31, 2017. CNL Healthcare shares originally sold for $10.00.
The MacKenzie offer is the second unsolicited tender offer in recent weeks for shares of CNL Healthcare. Last month, Everest REIT Investors purchased approximately 173,600 shares of the company for $1.3 million at $7.50 per share.
Over the summer, CNL Healthcare appointed a special committee of its independent directors to evaluate strategic alternatives in order to provide liquidity to shareholders.
Strategic alternatives may include listing the company’s common stock on a national exchange; selling the company or its assets and distributing the net proceeds to shareholders; or merging with a third party that would provide shareholders with cash and/or securities of a publicly traded company.
MacKenzie’s offer constitutes 5.03 percent of the outstanding shares, and the company would pay up to $67.8 million if all shares in the current offer are tendered. MacKenzie does not currently own any shares of the REIT.
CNL Healthcare Properties focuses on acquiring properties in the seniors housing and healthcare sectors, including stabilized, value-add and development assets, as well as other income-producing properties, real-estate related securities and loans. The company closed its offering in September 2015 after raising more than $1.7 billion in investor equity, according to Summit Investment Research.
The company’s multi-billion-dollar real estate portfolio is comprised of 142 properties located in 34 states, including 72 seniors housing communities, 53 medical office buildings, 12 post-acute care facilities and five acute-care assets