MacKenzie Launches Unsolicited Tender Offer for Shares of Inland Residential
Affiliates of Mackenzie Capital Management have launched an unsolicited tender offer to purchase up to 200,000 shares of Inland Residential Properties Trust Inc., a publicly registered non-traded real estate investment trust.
Affiliates of MacKenzie Capital Management have launched an unsolicited tender offer to purchase up to 200,000 shares of Inland Residential Properties Trust Inc., a publicly registered non-traded real estate investment trust, for $11.39 each. The offer constitutes 9.26 percent of the outstanding shares and expires on March 22, 2019.
Inland Residential shareholders approved the company’s plan of liquidation in December 2018, which includes selling the company’s assets, distributing the net cash to shareholders, and dissolving the company.
The board recently approved a post-distribution estimated net asset value per share of $16.06 for the company’s Class A common stock as of February 1, 2019. Inland Residential paid shareholders an initial liquidating distribution of approximately $4.53 per share funded from the sale of The Commons at Town Center, an 85-unit multifamily property located in Vernon Hills, Illinois. Shares originally sold for $25.00.
MacKenzie and its affiliates do not own any shares of the REIT and would pay approximately $2.3 million if all 200,000 shares in the current offer are tendered.
Inland Residential Properties Trust’s $1 billion offering was declared effective in February 2015 and raised approximately $47 million in investor equity before closing at the end of 2017, according to Summit Investment Research. The company invests in multifamily properties located primarily in the top 100 U.S. metropolitan statistical areas.
